Tight spread

[scose-no-doubt]

Does it mean the MMs are getting hella flow or that there's confusion in the market as to perceived value or something else completely?

I dinny understand et. <-- scottash

Answers on a postcard as always y'all.

 

[oildaytrader]

Does it mean the MMs are getting hella flow or that there's confusion in the market as to perceived value or something else completely?

I dinny understand et. <-- scottash

Answers on a postcard as always y'all.

NO ,those crooked spread betting brokers are lying .They just delay your fill with re-quotes , whilst waiting for price to go in their favour and give them an extra spread.

 

[scose-no-doubt]

I never said anything about spread-betting you tw@. Please leave and delete your post.

 

[Dommo]

I'm no MM but I'd expect to see tight spread only when there is plenty of flow/competition AND a degree of comfort that current price is right (ie no imminent news, and two sided flow confirming mid price).
When there is uncertainty (eg moments before NFP) I have seen bid/ask interest pretty much disappear for several price points.
I think this is what your question is about - but an employed MM at the coalface in a bank could give you a better answer.

 

[scose-no-doubt]

Yeh just been looking at usd/jpy. been in a v tight range for a while and was wondering whether it's due to some decent sized transacting at the levels.

 

[Dommo]

Yeh just been looking at usd/jpy. been in a v tight range for a while and was wondering whether it's due to some decent sized transacting at the levels.

Right - is your question about a tight price range, or a tight bid-ask spread? I was talking only about the latter.

 

[scose-no-doubt]

Range. Essentially quite a similar thing though isn't it

 

[Dommo]

To me, range is far more complicated to analyse - a tight range might involve very little interest or tremendous competing interest, and some participants will be milking it for small profits in either direction. If I had the right insight I'd be scalping this.

 

[scose-no-doubt]

wouldn't the spread widen is there was no interest?

 

[oildaytrader]

Range. Essentially quite a similar thing though isn't it

wat a retard.

Spread= range

 

[Dommo]

wouldn't the spread widen is there was no interest?

By spread, if you mean bid ask spread, then yes, this would widen.

If you mean trading range, I think it's difficult to say much in general. There is low interest in Dow futures overnight (or when they trade for limited hours on US hols), and generally in those periods the trading range will be relatively tight (but at the same time the bid-ask spread will be wide). But if someone piles in, the range will widen quickly.

 

[scose-no-doubt]

Yes, I did mean the bid/ask would widen.

See what you're saying about range in light volume too. Makes sense actually but I'm thinking more in currency which has to be traded if you see what I'm saying.