Bid and Ask Price
- Thread starter cashclay
- Start date
Not at all. Don't go for links. Display a DOM. Look at it for the rest of your life or at best run Backtests. Bids & Asks alone tell you nothing at all. It's really hard to tell from Time & Sales + Deep Of Market alone where the underlying is likely to go. Or you trade tick ? Microseconds ? I know there is a lot of hype behind this but it's not what it used to be. Have you ever looked at a DOM ?! It has its value. Rhythm, Ratios, Fake / Real Orders, Standing Liquidity but Bro' ... Leave that bottle alone if you can't enjoy it with friends, else than ETers.
HFT's and quants do a lot of work out of the limit order book, since signals on the book lead those in the tape. But the dynamics of the order book (bid and ask) are far from simple.
The answer to your question is "it depends" since a large size may be a large buyer, or it may be a bluff sitting next to a reserved/hidden sell order...
https://www.imperial.ac.uk/mwg-inte...d=qIR5M4CdE4zaZgi5QDsy5_4zIFy3Ow2U2KrwttPi3mk,
The answer to your question is "it depends" since a large size may be a large buyer, or it may be a bluff sitting next to a reserved/hidden sell order...
https://www.imperial.ac.uk/mwg-inte...d=qIR5M4CdE4zaZgi5QDsy5_4zIFy3Ow2U2KrwttPi3mk,
Messed up the link on the prev post, here it is again.
https://www.imperial.ac.uk/media/im...ve-finance/events/Lillo-Imperial-Lecture3.pdf
https://www.imperial.ac.uk/media/im...ve-finance/events/Lillo-Imperial-Lecture3.pdf
Dear lord you need help....
@cashclay ... since it's likely that you don't understand one iota of what @Apophenia and @eusdaiki are saying, because your first question was how the bid and aks are related to the stock price... here's a helpful link:
EDIT> hmm, doesn't want to let me link to amazon... here's another one...
https://www.google.com.au/search?q=...hrome&ie=UTF-8#q=Trading+For+Dummies&tbm=shop