Level II usefulness

sounds like the complaint is not you must show your full hand - its if you have orders in the system they should be visible. if you want to hide 100k shares behind 100 dont put the order in for 100k.
 
Quote from GSCO:

It's real interesting to see how different traders use different strategies. My entire Strategy is based on reading Level two. My only comment to people who don't see any usefulness in reading level two is that "you're not reading it properly."

Not that you can't make money without it, just that there is a right way and a wrong way to watch level two.
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Tell us more about you read it.
 
Quote from roberk:

[...]

If I was looking to buy/sell the quantities you are talking about I would be irked if the SEC told me I had to place it all once so that every buyer in the market knew exactly what I wanted.
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Hi roberk,

I understand your concern. But isn't this exactly the reason we have created the SEC for so that everybody has access to the same information. It's your right not wanting: "... so that every buyer in the market knew exactly what I wanted".

However it's not your right wanting the exchanges to do this hiding for you and keeping others out on it.

Be good,

nononsense
 
Quote from Rod Shaft:

It's a lot less useful now than it was 2 years ago, that's for sure. I think that the main reason is reserve size. Although it existed back then too, market makers have become very adept at using it to their advantage with huge size, especially in periods of low volatility. If you ask me, reserve size is a huge advantage to market makers and is completely unfair. If someone wants to bid 100000 shares, they should have to display 100000 shares, not 100 with 99000 magically hidden shares behind it. It makes Level 2 a complete joke at times and can be very difficult to read. The SEC should step in and do something about this.
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I have no love for MM's, Rod, believe me. But I can't agree with you that MM's should be forced to display 100000 shares if that is their true intention. That's part of the game. If you were playing 5 card poker, with two, one card draws, and were dealt three aces, would you bet 20 times the average bet before your first draw? No, you'd bet small, to keep the other players in the game. Its the same thing, imo.

I've just finally given up trading ETF's because with Specialists involved, its not a fair game. I'm now back to trading Nasdaq stocks only. I think that's a fairer playing field except for one thing - the large block trades that occur MM to MM, that don't have to be immediately (or ever?) reported. Maybe that's a necessary lack of transparency, but still, its trading activity that not all can see in real time.

davez
 
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