Idiot's Guide to Level II

[a0-0b]

A thread for silly questions from new folks who really haven't got a hang on the "whole trading thing" yet. (or the "hole trading thing" if i'm referring to my account). We'll reserve this thread for the most mundane questions, likely to be of no use to man-nor-beast other than the asker, but worth sharing anyways.

I'll kick off with a starter for 10!

Assuming the order book is static, if i place a limit order does it get put on the order book no matter what level i place the at?

And an extra for 5!

If i place a market order (to buy for example) does it get placed on the order book as a bid at the current ask-price, then matched against that ask? or is the ask just taken off the books?

(see, i told you there were silly questions)

Andrew.

 

[Trader333]

Assuming the order book is static, if i place a limit order does it get put on the order book no matter what level i place the at?

Yes but it may not be visible depending on whether someone else is also placing a limit order at the same price.

If i place a market order (to buy for example) does it get placed on the order book as a bid at the current ask-price, then matched against that ask? or is the ask just taken off the books?

It will get filled at the current Ask (or possibly higher if the market is moving quickly) pretty much immediately.


Paul

 

[taba]

spread bet daily and when i found a large order couldnt be filled i was told i should have level 2 to make sure the order could have been filled.. any ideas where to get this info on crude and indices?

 

[dickiedickieg]

Hi Taba
I trade Nymex and ICE Crude contracts, along with other products daily from an office in Colchester with a group of other guys (i emailed you before i read your posts to enquire about your trading). Although i rarely bet i have "level 2" or market depth on my trading software. I have been trading for almost twenty years now and speak with both the Nymex/Globex and ICE exchanges on a regular basis so let me know if i may be of assistance. Good luck
Rich