they don't.
they don't.
DionysusToast
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Happens on stocks a lot - when 2 parties agree to a trade & then it's reported later as a block trade.
It happens on futures regularly - I think that's just the platform/data going a bit crazy. I'm not sure if you can target a bid below the best for a sell - one of the TT guys would be best to ask that.
It happens on futures regularly - I think that's just the platform/data going a bit crazy. I'm not sure if you can target a bid below the best for a sell - one of the TT guys would be best to ask that.
That's dark pools or whatever they call it though, it shouldn't be able to occur.
DionysusToast
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Nothing to do with dark pools.
2 parties are free to arrange a sale of stock between themselves at an agreed price. Think about it - if you have 50,000 shares & you know someone that needs 50,000 shares and you agree the price, there is very little chance that this will be market price at the time the sale goes through.
Hence block trades.
2 parties are free to arrange a sale of stock between themselves at an agreed price. Think about it - if you have 50,000 shares & you know someone that needs 50,000 shares and you agree the price, there is very little chance that this will be market price at the time the sale goes through.
Hence block trades.
DionysusToast
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It does - but a broker can arrange a sale between 2 parties.
It gets reported when it goes through. These kinds of transactions don't generally impact the tape reading/order book side though. They are best ignored.
It gets reported when it goes through. These kinds of transactions don't generally impact the tape reading/order book side though. They are best ignored.
wackypete2
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Block trades are always reported later anyway. You see several of them right on or after the close at prices quite a bit away from the closing price. Also, most block trades occur outside the market price at the time depending who how badly someone wants to buy or sell. Since it's a private transaction the current market bid/offer prices don't apply.
Peter
Peter
Peter
Peter
wackypete2
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Most online broker software will ignore them so they won't erratically trigger your limit or stop orders.
Peter
DionysusToast
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They can create very nice looking pin bars though !
amit1986
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wackypete2
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Yes they do. Creates havoc for traders using pin bars or high/low prices over a time period range. It's like the market is throwing you a curve ball! Those that bite will swing and miss.
Peter
I like these statements:
Captain Haddock
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Yes good stuff. Tape is really understanding and watching the response of the DOM to the time and sales. You need to see both IMO to get a true feel.
An example:
See bidders stepping in with unusual size at best bid, not getting filled and the market backing away from him? You've got your short term supply/demand imbalance reading right there. What does he do now? He needs to get more aggressive if he wants a fill, so he moves it up a few ticks, still no supply? What's the only way to ensure a fill? Go market, there's your tradeable pop.
On the flip side
Unusual size steps up to best bid and gets filled immediately. Supply meeting demand instantly and likely looking for more if he took it all. Perhaps not tradeable in itself but used at a key level it's valuable info about who is lurking.
Loads of clues on the tape if you know what to look for.
DionysusToast
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I use IB - but I reckon Mirus are fairly good. A lot of people rave about Infinity.
Still - I like the Universal account of IB but you don't get Ninja for free with IB.
Still - I like the Universal account of IB but you don't get Ninja for free with IB.
I never thought the DOM could be useful because I thought the bids or asks could be fake or get pulled. But what you said about watching it with Time and Sales sounds like a really good idea. Ive been trying to read the Time and Sales or more exactly "Price and Sales" and that by itself is pretty good so far.
Let me see if Im understanding this. Theres an unusually large amount of bids(buy contracts) at best bid. The market is moving away up or down? I would believe up. That means they really want to buy but theres no one to sell it to them?
So if I understood this correct, because the bids(buys) get filled quickly that means theres a lot of people wanting to sell? Or that theres a lot of available contracts because no ones selling so price will go up?
Gerardo Cabrera
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You can use the tape and dom of 6E if you are trading Euro/US$. They just move in synch.
DionysusToast
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Of course.
Start off reading momentum & use that in trade management - should take 3-4 weeks tops.
