NYSE Open Book questions
- Thread starter kunde53
- Start date
It's not nearly as valuable as it was 2-3 yrs. ago, but for $50/mo., I would definitely get it. I'm not sure when it starts updating, but it's well before the market opens at 9:30 est. It doesn't show indications of where the stock is going to open though, only buyers and sellers that are displayed on the book at that time.
i've only recently started using nyob, and my listed trading has gotten much better since.
if i'm trying to unload some BSC, i'd sit a BRUT sell order at $99.86, right beneath the 4,000 share, .87 resistence. a 4,000 share order is big for a $100, fairly thin stock, so i know should be there for a while.
being that the book is delayed, it could always disappear by the time the stock runs the 16 cents, but you're playing the odds. more times than not, that resistence would not only still be there, but would be hard to penetrate on the first try. you'd sell a penny under the resistence, pick up some more on a deep retrace (unless they lower that sell block), then keep front-running your sells under the big block until it's taken out.
the reason you'd use BRUT is to avoid the ECN charge, and, if the big seller suddenly lifted the block, it would be easier to cancel your sell order and continue on with the run.
nyob is only for looking at orders that are on the specialists book in a delay mode.
large orders on the book does not represent support nor resistance. i've leaned on large orders many times before, the results weren't pretty. trading with nyob is a game of texas hold'em. you get to see the flop for $50bucks/month but its upto you to do your own betting. no one is willing to let you see his hand.
the book is very helpful as to find an exit. you can see where the large orders are. either you take them out(because they provide liquidity for you), or step infront of them to exit at "big numbers" (10s, 20s, 30s... 25s 50s 75s...) to increase your chances of getting price improvement.
large orders on the book does not represent support nor resistance. i've leaned on large orders many times before, the results weren't pretty. trading with nyob is a game of texas hold'em. you get to see the flop for $50bucks/month but its upto you to do your own betting. no one is willing to let you see his hand.
the book is very helpful as to find an exit. you can see where the large orders are. either you take them out(because they provide liquidity for you), or step infront of them to exit at "big numbers" (10s, 20s, 30s... 25s 50s 75s...) to increase your chances of getting price improvement.
" the book is very helpful as to find an exit. you can see where the large orders are. either you take them out(because they provide liquidity for you), or step infront of them to exit at "big numbers" (10s, 20s, 30s... 25s 50s 75s...) to increase your chances of getting price improvement."
Thanks for the reply. Could you please explain what you mean by "take them out"
I understand sammy's idea of exiting his long trade 1 penny below the the large 4k ask on the NYOB.
However, I don't understand what you mean by exiting at "big numbers": 10s, 20s, 30s. ect."
Can you please clarify?
Thanks for the reply. Could you please explain what you mean by "take them out"
I understand sammy's idea of exiting his long trade 1 penny below the the large 4k ask on the NYOB.
However, I don't understand what you mean by exiting at "big numbers": 10s, 20s, 30s. ect."
Can you please clarify?
I don't understand what you mean. How do they "fuck with their books"?, and how does that affect a trader like you or me? I realize that some Nasdaq MM can hide their intentions through ECN's...but i was told that NYSE was much easier to read because the specialist's intentions are clearer.
what he means is, they can always show fake orders, and pull them. they'll place a big block to "show" s/r, then pull it, lower it, or raise it in an effort to reduce or completely eliminate their transparency. but sometimes, it is a legit order. which goes back to playing the odds.
being that it's delayed, and doesn't show the ecn or hidden orders, you have to make your best guesstimate of that's going on. when i see a big order, i'll almost always assume its real, because most likely, other people will assume it's real also, and penny or nickel it.. thereby making it psuedo-s/r not only by the block, but by the ecn orders under it. if they pull it, sweep the ecns with a market buy (including your order), and run it past the spot where their fake block used to be, they got you.. but at least you got your ask price.
it is smoke & mirrors trickery, but with time, you'll learn how to work it favorably.