From my experience, Open Book has a very limited value (if any). Most of the time you won't get any indication from it.
Nyse Open Book ?
- Thread starter chaos_trader
- Start date
Thank you very muchfor your advice I am going to forget the NYSE OPEN BOOK.
please:
1:it is necessary to incorporate the level 2 in the trading (NASDAQ)?
2: the level 2 have some traps or dangers?
please:
1:it is necessary to incorporate the level 2 in the trading (NASDAQ)?
2: the level 2 have some traps or dangers?
Serge Pustelnik
Genesis Securities
For NASDAQ trading, LEVEL II is a must, albeit that you know how to use it. Day trading NASDAQ stocks without a LEVEL II is very difficult and I would highly recommend not trading without it. 80% of our trading decisions come from analyzing the level II, and yes, as some have noted size does not = strength. You have to know what game everyone is playing. Moreover, gaps in the in-between prices must be always taken into consideration.
Best of luck Trading!
What exactly does it mean when the open book is crossed? Ive read a few different things, such as a order to buy above the market/ sell below the market that didn't get filled and also that it may be a stop limit order that is entered. Any input would be greatly appreciated.
Also what exactly is a slingshot or envelope? Thanks!
Also what exactly is a slingshot or envelope? Thanks!
Level 2 is, of course, just a quote window...the rest is bogus. NYSE Open Book is a requirement for enveloping, tradethroughs, and is used with basic tape reading....we don't even bothe with L2 unless we have a naz stock in a pair or something.
The L2 games have been written about here ad-nauseum, so I won't go into it again...
Good Luck everyone....have a great weekend...
Don
The NYSE is an absolute must! Say for example you have a large bid on the inside market. There can be an order coming through the book selling the whole thing five seconds before it gets printed. The stock on the bid is GONE, but without the book you have no idea, you just sit there leaning on a bid that has no value. With the book you can at least NX 1,000 shares before that large order gets filled. You also need to know what's behind the inside market...how could you possibly trade without it? Trading without the book is suicide. The 50 bucks is nothing, you will get caught for thousands a month to "save" 50 bucks.
Quote from chaos_trader:
I am looking for a book about the NYSE OPEN BOOK and the techniques of trading with this tool?
i don't want to be mean so please don't take this wrong but your a fool. there is no book that will teach you to trade any style. i trade nyse and am net profitable almost everyday. you know what i use the nyse book, charts, tape and the time i put in learning. i just saved you 10 bucks on a book.
I believe it is impossible for the NYOB to be crossed. However, the LevelII is often crossed on an NYSE stock.
Crossed can mean two things, but the two meanings are:
1) The bid on one exchange = the offer on another
2) The bid on one exchange > the offer on another
This happens all the time because "NYSE" listed stocks are traded at many ECNs or regional exchanges.
nitro