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Level 2 related question

Honest reporting on shorter-term trading activity and ideas
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Level 2 related question


Postby GN100 » June 3rd, 2017, 1:25 pm

I posted this over on the Brokers and Share Dealing Board but, as yet, no takers. Anyone here have any thoughts?



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Re: Level 2 related question


Postby bulltraderpt » June 24th, 2017, 3:18 pm

My question is what happens when I place a limit buy or stop order with my on line broker. Does my order remain within the broker's system until it becomes executable or is it visible in the on line order book (level 2)? I guess that my order is not visible until it becomes executable and, assuming that's the case - does it not follow that I would need Direct Market Access (DMA) to take advantage of level 2 and thus place my orders direct on the order book? ISTM without DMA level 2 is not worth the cost of having it??

As to your first question, I can't give a proper definitive answer. When you execute an order which you send to the market the usual line is they will be executed in a fair and equitable way, (it's been a while since I sent such an order).

As to the second part of your question, I use Level II on a daily basis in conjunction with intra-day charts and as the order flow changes or you see the buys and sells go in and as such can trade the sentiment changes around various price points which you see as offering 'value.'

As a full time day trader this is worth it's weight in gold, so wouldn't be without it. As for a buy and hold investor, I am not so sure.

Just a thought, not all brokers are created equal, so be careful in your choice.

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