Which market data feeds?

[tcomp]

Using my broker CMEG, they initially give you the standard market data package which is nasdaq and nyse level 1 and level 2.

They give you the option to add on such things as INET totalview, ARCA book, BATS book, IEX book, EDGA book, etc...

What are all these different data feeds and do I need them? I've been using the standard package for a while now and wonder if buying these other data feeds will give me an advantage? I'm confused on what all these other data feeds do to be honest, am I currently missing out on large buyers/sellers on the level 2 that I am not able to see without these data feeds?

Thanks

 

[DaveV]

At your current level of trading experience, buying the additional data feeds would be like buying a Steinway Grand Piano for a student just learning to play the piano. i.e. a complete waste.

Learn how to use the tools that you are initially offered (nasdaq and nyse level 1 and level 2), with paper trading before moving on to other feeds.

 

[tcomp]

thanks for the reply.

what do these other feeds provide though? as I said am I currently missing out on large buyers/sellers on the level 2 that I am not able to see without these data feeds?

 

[tcomp]

I already have IEX, ARCA, BATS, EDGA etc.. showing on the level 2 with the standard package. What am I missing without these other add on packages (INET totalview, arca book, bats book, etc.)

 

[qlai]

I already have IEX, ARCA, BATS, EDGA etc.. showing on the level 2 with the standard package. What am I missing without these other add on packages (INET totalview, arca book, bats book, etc.)

What you are seeing is BBO from each exchange. But you don’t see what is below best bid and above best offer. For example, let’s say BB on Nasdaq is 100@10.00. You will see that, but let’s say the next level below is 10000@9.99, which you will not see because it’s not BB. Let’s assume 10000 shares is a lot for the stock and would be good to know. You may not want to short the stock at 10.00 when there’s 10000 shares of support outstanding.