challenging trading environment

Thanks for the info, we will definitely beta test the open book in my office to see how it all works....and perhaps make it an option to the traders.
 
I have had no experience by having a delay using the Open Book. If anything, the book will display as soon as the bid/ask is changed, but usally you will see orders whack out the bid or offer on the book BEFORE the quote is updated...a HUGE advantage. Granted it is new technology and every once in a while it will cut off, but if you are a true NYSE daytrader then you should be able to trade without the open book anyway via use of T&S and the last price. The open book is just another tool that we can use. But, I have not seen any delays of 10-15sec with the Open Book ever. A prefect example was on Thursday on TGT. The spread was 45.02 x 45.08 and 1k x 5. There was 45k at the figure at 7.5k at .01 when 7.2k came in on the book at .03. It was on the book for 3-4sec. before .03 started printing on the T&S and then the offer was updated to show 45.02 x 45.03. So, I lifted the rest of the offer, sent 2 500sh mkt orders to whack out the offers and the stock was trading .24 not long after. Realize that the specialist is the one who has to update the bid/offer of the quote, so obviously if you can see an electronic version of the book you have an advantage of a few seconds to react to this data. On the TGT example, the order came in through DOT, hit the the order book at .03, the specialist saw this and printed some stock at .03, then updated the quote when he had a chance.

NYSEat21
 
NYSEat21,

It is deceiving, but I do think the data you are seeing is 10 seconds delayed, so be aware of that. It may not seem that way, I know, but let's face it, how delayed is the inside quote? The specialist often takes well over 10 seconds to update his inside market, so it's no surprise that the book doesn't seem delayed to you. I think that in some cases, the open book provides a closer look at reality than the inside quote, despite the book's delay. For example, a 1 up market no longer leaves us blind because now the bid-ask sizes can be viewed, despite what the specialist is currently showing. And let's face it, we finally got what we wanted - the specialist's book - a look at what has always been hidden from us.

Like someone noted before, the specialists aren't happy about Direct +. That's not surprising, but I have to think that the book hasn't gone over real well either.

Why do you think that a NYSE trader just needs the T&S and last price to trade? Isn't that a little dangerous in an environment where everyone else can see the book?
 
vsisto, the reason I said all you need is the last price and T&S is because before the open book that is, more or less, all you had. Honestly, that is all a good trader needs. You can read the specialist' actions by seeing where he prints stock and/or if he offers the stock on a minus or plus ticks the stock. The T&S tells you everything from the bid and offer to where the stock is printing out. I wouldn't knock the Open Book until you try it. I stand by my statement that there is not a delay and if there is it is not 10-15sec., but to all their own. The reason I am set on this is because the bid size might quote 50,000, while the book says 17,500 and once people start selling you will see each order whack out a portion of the bid as it prints on the T&S. Then, whatever was left will disappear from the book, you see it on the T&S, then the bid disappears from the quote. Like I said, to all their own, but try it first. Regardless, I only use it once a stock gets close to the half or the figure, to find imbalances in the pre-market and to see who is offering/bidding stock of any size if I am about to buy/sell size. As far as Direct+, I hate it also. It is the worst thing on earth. I will be selling a stock and working it lower and some idiot mook trader will AutoX the stock and cause everyone to get scared and cover. I don't want an AutoX if I'm trying to whack out a bid or lift an offer.
 
I am going to pull a Don Bright here and say IE Blotter is Worldco's software, and our firm decided to let our traders experiment with the open book the day it launched, at no cost to our traders, even those without capital, like the new guy on my team who makes 5 trades a day, 100 shares a piece, makes/loses 5-25 dollars.

We don't make excuses, we let our traders decide whether it is total garbage (which in my opinion it has been, although after reading this thread on Monday I will sure to give it a second look), or very useful.

We are not afraid that we may waste some capital and be the first kid on the block to get those new toys. When we say we have financial strength, we mean it.
 
I like hearing from NYSE21, et al, about how we think as traders. Those of us who were floor traders for so many years understand how "non electronic" trades affect the market, and yet since we have had to adapt to the electronics (me back in 1979 using the ITS system for NYSE trades, while still having the placate the Regional Specialists...not an easy task)..

Anyway, any new guys out there, I suggest you read some of this stuff, and even though you may hear some strong "opinions" ...I think you will be able to pick up some excellent points about trading..

.....not quite 2 cents....:)

Oh, and BTW, thanks Hitman ...I've never had anyone pull a "Don Bright" before...

:-)
 
Does anyon know what trading firms offer the open book? Reading info on the open book has convinced me that this can be a powerful trading tool.
 
Dustin thanks -----I clicked on realtick and they indicate a charge of 50 bucks a month. I thought it was alot more expensive. Does this sound right or are there additional expenses.
 
You must log in or register to reply here.
Back
Top