Level 2 on Futures

[cutetrader]

Is level 2 on futures are useful? I personally find there were fake numbers being put on over them.

 

[Stocktracker]

Watch time and sales and the USD/JPY carry trade and you will be ok!

 

[algofy]

Is level 2 on futures are useful? I personally find there were fake numbers being put on over them.

I believe the closer to the inside bid/ask the more useful.

 

[Golden Retriever Trading]

It depends. As algofy said, they tend to be a bit better when closer.. but I've seen them yank the bids out and the price falls like 30 ticks in seconds for them to only bid it back up to the same level. Also, I've noticed on the ES during off hours, the algos just keep thousands of contracts there and trail the price on the bid/ask up and down and very few contracts traded.

 

[java]

Is level 2 on futures are useful? I personally find there were fake numbers being put on over them.

What fake numbers are you referring to?

 

[Javier]

Studied them for years. What you mean I think is that wich amount are made by bots. But that doesnt mean your orders aren't reflected there.

 

[eusdaiki]

L2 on the futures is a lot cleaner than on the stocks...

 

[cutetrader]

What fake numbers are you referring to?

By fake I meant the number will be 600 and next second it will be 60, even though no trade has been made. It fluctuate widely, before I can come to a conclusion. (Not all times though, but hard to know when I am right/wrong)

 

[cutetrader]

Studied them for years. What you mean I think is that wich amount are made by bots. But that doesnt mean your orders aren't reflected there.

Yes, My orders adds to bid/ask, but it's not easy to get the moving direction from that.

 

[wartrace]

Level 2 is very useful as algofy stated. It is one of the key things I look at while trading however I focus on the immediate 4 to 5 levels. In my opinion the flashing of large order size 10 to 15 levels away from price are algos messing with other algos.