What causes the price to jump +/- >1 point on the DOM when there are offers in btwn?

ProfitTakgFool · Oct 15, 2008

I have never found the DOM to be good for anything other than placing orders.

Quote from IronFist:

I'm seriously trying to learn how to utilize the DOM to my advantage but I feel like I'm wasting my time. I've found a couple articles on line but the things they say happen way too quickly for a human like me to capitalize on them.

PocketChange · Oct 15, 2008

Quote from IronFist:

What does it mean when it's trading below the bid?

I just saw that for a sec. The bid was 892.25, the ask was 892.00, but the highlighted row was 891.75.

What your seeing is the last trade... the market moves fast

limitdown · Nov 11, 2008

Quote from IronFist:

Which leads me to one of the following conclusions:

1. There is no edge to be gained through using DOM

2. There is an edge to be gained but my software is hindering me (ie. I am unable to utilize it)

3. People who claim to use DOM as their edge are lying

4. I lack the intellectual capabilities to use DOM as an edge.

My responses:

1. Likely the case. Hopefully if this is true I won't waste too much time.

2. Quite possible.

3. Quite possible.

4. Doubtful, especially since I've heard a lot of floor traders are average IQ at best. They probably just have better resources (ie. give a genius a stick and a moron a machine gun and who is likely to win?).

rofl, a genius a stick, what a question....
the moron on the floor of the exchange, of course!

they have the 3rd and 4th dimension that we as upstairs traders, as we are called by floor traders, do not have, namely:

1) pit noise
2) interaction from the environment
3) visual queues (large quote boards, verbal messages from others, eyes on contact with other traders of size, etc.)

one thing you can attempt to do is get pit noise from one of those broadcasters

another thing you might possible do is add a T&S next to your dome and keep eyes on and see the pattern of volume, and most importantly, highlight block trades (note: you designate what size order quantity triggers the block alert)

your objective in all this is to close the visual / perceptory gap and perhaps answer the issue at hand

Reaver · Nov 11, 2008

Code:
Quote from IronFist:

Say you're looking at the NQ and it looks like this:

Code:

1377.00 1376.75 1376.50 1376.25 20 1376.00 20 1375.75 15 1375.50 35 1375.25 20 (2) [b]1375.00[/b] 15 1374.75 12 1374.50 20 1374.25 30 1374.00 20 1373.75 1373.50

Pretty normal situation. People are trying to sell at 1375.25 through 1376.25.

But then the next split second update to the DOM shows the trade at 1376.50.

wtf??????????????????????????????

What happened to all those offers in between?????? Did they all get skipped? Did someone just get exploited with a market order?

I can see gaps in price if orders are sparse like penny stocks or whatever, but not when there are no holes in the orders in something with high volume like NQ Or ES

What is going on? What causes price to jump by more than the minimum tick amount when there are offers through the gap?

Thanks.

Hey Iron Fist, I don't really know much about you, but from what I have seen, you really are busting your ass to learn this trading game. FWIW I respect that shit.

gnome · Nov 11, 2008

Is there a "rolling record" of trades (number of contracts at what price) actually executed on the Globex?

Just curious... I don't think I have that, if available.. and don't see what value that would be..

Aaron Copland · Nov 11, 2008

Code:
Quote from IronFist:

Say you're looking at the NQ and it looks like this:

Code:

1377.00 1376.75 1376.50 1376.25 20 1376.00 20 1375.75 15 1375.50 35 1375.25 20 (2) [b]1375.00[/b] 15 1374.75 12 1374.50 20 1374.25 30 1374.00 20 1373.75 1373.50

Pretty normal situation. People are trying to sell at 1375.25 through 1376.25.

But then the next split second update to the DOM shows the trade at 1376.50.

wtf??????????????????????????????

What happened to all those offers in between?????? Did they all get skipped? Did someone just get exploited with a market order?

I can see gaps in price if orders are sparse like penny stocks or whatever, but not when there are no holes in the orders in something with high volume like NQ Or ES

What is going on? What causes price to jump by more than the minimum tick amount when there are offers through the gap?

Thanks.

Donât frustrate yourself by watching these Doms. A lot of the bid and offers are fake.

nonlinear5 · Nov 11, 2008

Code:
Quote from IronFist:

Say you're looking at the NQ and it looks like this:

Code:

1377.00 1376.75 1376.50 1376.25 20 1376.00 20 1375.75 15 1375.50 35 1375.25 20 (2) [b]1375.00[/b] 15 1374.75 12 1374.50 20 1374.25 30 1374.00 20 1373.75 1373.50

Pretty normal situation. People are trying to sell at 1375.25 through 1376.25.

But then the next split second update to the DOM shows the trade at 1376.50.

wtf??????????????????????????????

What happened to all those offers in between?????? Did they all get skipped? Did someone just get exploited with a market order?

If I place a limit order to buy 115 contracts at 1376.50, my order will be filled as follows, assuming that there were no market orders (or better limit orders) ahead of me at the moment:

20@1375.25
35@1375.50
15@1375.75
20@1376.00
20@1376.25
5@1376.5

The last trade that you'll see in your trading platform is 5@1376.5

The DOM will look like this:

Code:

           1377.75       xx
           1377.50       xx
           1377.25       xx
           1377.00       xx
           1376.75       xx
       (5) [b]1376.5[/b]
  5        1376.5
 xx        1376.25
 xx        1376.00
 xx        1375.75
 xx        1375.50
 xx        1375.25

limitdown · Nov 11, 2008

Quote from gnome:

Is there a "rolling record" of trades (number of contracts at what price) actually executed on the Globex?

Just curious... I don't think I have that, if available.. and don't see what value that would be..

isn't that what T&S (time and sales) are, since the feed is coming from (verify this with your broker) the Globex?