Large Bid Size

Quote from DataCruncher:

well first let's examine what happens in a situation like this:
I was watching MF Global this morning. Saw on Level 2 that there was a couple bids for small lots (under 500 shares) and then a couple cents under the best bid is a bid for 10,000 shares.
Although 10,000 isn't that much, it was a lot compared to the surrounding bids.

Is there any way to gain insight into whether this 10,000 bid will offer a little support until it's chewed through, or whether the bid will simply be moved down quickly once it's about to get hit?
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10k shares on something that trades that much and that just had that much dillution means nothing. maybe if the bid was 300k or 400k and was actually moving the stock up then it would be something to watch and get in front of. if it wasn't moving and was just sitting there then maybe you can use it for support but again i'd just have to see how it was trading.
 
Quote from traderyin:

If I'm there to buy 100k shares, am I going to just put a limit order and let it sit on the book for everyone to see? ummm......
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Yes. Because you WILL get filled.

If someone posts a 100K bid, it could be the end of his 1Mil order and he's just saying "come and take it so I can go home".
 
Quote from bespoke:

Yes. Because you WILL get filled.

If someone posts a 100K bid, it could be the end of his 1Mil order and he's just saying "come and take it so I can go home".
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So there are two possibilities:

1) Someone just want to get fill at that price only- nothing more/less. If he doesn't get fill at that price, he doesn't want the stock- or care for it.

2)Someone put a bid there to create a "bullish" sentiment, or some level of support

Either way, it doesn't make a bullish case for the stock IMHO.
 
L2 is trivially easy to read.

IF:

You stand on your head

Convert all prices to Octal

Squint

Cross your eyes till your nose bleeds.


At that point all is revealed.

3232466.jpg


not Jack Hershey.
 
Quote from traderyin:

If I'm there to buy 100k shares, am I going to just put a limit order and let it sit on the book for everyone to see? ummm......
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yes. have you watched the stock market before?
 
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