Level 2 on Dax futures

blash

Active member
111 0
Apparently there is a level 2 screen available for Dax futures.

Does anybody use it?

Can it be used in trading decisions in a similar way to Nasdaq LII.
 

blash

Active member
111 0
I use Tenfore for the datafeed.

They have told me they can supply LII but I though I'd better ask around first so see if theres any point in getting it.
 

options

Senior member
2,374 218
Well see if you can get a demo/trial.
You know what a L2 nasdaq screen looks loke in comparision to a uk supposed L2 screen.
but Dax future L2 screen will probably be no more than a market depth screen.
 

blash

Active member
111 0
Yes your right Boy.

I've just got them to switch it on for me to have a look at and its just showing a DOM screen which I believe is just showing the best 10 limit orders above and below the current price.

I dont think theres much to gain from it unless your trading with size.
 

blash

Active member
111 0
Well its just confused the hell out of me.

As the Dax was falling to 3600 you could see some size on the bid at 3600, over 250 contracts, so you might read into that there might be some support. Some large trades went through at 3600.

it went through and down to 3560 so I cant see how you could use it to forsee possible support/resistance or am I reading it the wrong way round.
 

al-motor

Active member
249 0
Blash,

when u said L2 in Dax that was the first i have heard about it as well- I think the nearest thing u can get , is like usay the volume- unfortunately not many people here trade the dax here by the looks of it, so not too sure how much info u will get.

Sudden volumes on a tick chart ( around 100/200 contracts), could prove short term supp/resis- but that is only general info............
 

Halo

Active member
136 0
Right.
Dax trades on Eurex, the Exchange publish the best 10 bids/offers and associated volumes...It's up to your broker whether they distribute this information to you and given bandwidth considerations many just limit you to best bid/offer. As an anonymous Exchange you won't get any other information (like counterparty) so using a cash equity terms like Level 2 is perhaps a little misleading.... Many Futures scalpers and spreaders use the Depth to help them see where size is building up - to counter that there are many (large) traders who will 'spoof' the market by showing large bids and offers with the knowledge it can be seen and may influence others. Another major advantage of being able to see the Depth is to take advantage of the Exchange matching systems - Eurex is First in First Out - if you're 'first' on a 3000.0 bid, your buy will match as soon as anything trades at that price...... if you're behind 250 lots, that has to trade before you get your fill, using the depth you can see where there are 'gaps' in the order book where you can get this advantage. In short, pro's do use the Depth of Market, but the only people who really allow it to influence their trading decisions are the short-term scalpers and spreaders who trade every few seconds/minutes.
 

blash

Active member
111 0
Thanks for your help halo most informative.

Do you know of any good boards were they discuss the Dax a bit more than here.

Thought I'd attach an image of what tenfore call a Level 2 screen just in case anybody was interested.
 

Attachments

Halo

Active member
136 0
I think there's quite a few Dax and Eurostoxx traders lurking on the boards.. probably best to kick off a new thread if there's anything specific (I'm a bund boy myself)....
 
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