Trading Information pop up - Bid and Ask volumes

Wednesday, Sep 11 2019 by

If I see on the new 'Trading information' pop up: 

6917e8c76df187529f1ab9e19b320fd7769fcb9c1568217736.png


 is this in effect saying that there are orders from someone sitting at these levels?

In this example would it, in isolation, be interpreted as bullish?

Is Level 2 just more detail of this sort?

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4 Posts on this Thread show/hide all

HumourMe Thu 11:41am 1 of 4

To answer my own questions after a bit of googling:

 is this in effect saying that there are orders from someone sitting at these levels? In this example would it, in isolation, be interpreted as bullish?

Yes and Yes.

Theory indicates that this can show potential demand/supply and probable price direction. For this specific example, theory was wrong.

Is Level 2 just more detail of this sort?

From what I can determine. Yes.


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Gromley Thu 11:55am 2 of 4
2

In reply to post #512501

Hi HumourMe,


Not really my area of expertise, but as I *think* you've made a mistake in the above, I thought I'd question it.

Surely this pattern is NOT bullish.

If you want to sell any stock, the most you will be able to get rid of is 400 shares for 76p, if you want to sell anymore than that you'll have to accept a lower price.

However, if you want to buy stock you can get up to 20,000 shares for 78p. (If you want more you'll have to pay more).

So that looks "negative" to me??

(I think you imply that this subsequently went down? In which case this might have been predictive).

As I understand it "Level 2" will give visibility of the depth of the order book.

So there might be a second buyer prepared to take 100,000 shares but only if you accept 75.9p and if there are no other sellers other than the 20,000 offer (or if all the other sellers are only prepared to accept a much higher price) - that might give a more positive message.

As I say, not really my area, but hopefully if I've horribly misinterpreted someone will come along and point it out. Also I have no really idea how much benefit this really can be to an investor (quite low down on my priority list to find out - so implicitly I am guessing - not much).



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HumourMe Thu 12:33pm 3 of 4

In reply to post #512516

Quite happy to be challenged, not least because I don't understand it. The information is presented and like most TA (and FA) I wonder if I can make use of it. Your interpretation makes sense.

I came across it when exploring the new site; my broker also thinks it relevant. I'm on the fence :-)

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sharw Mon 12:03pm 4 of 4
2

As I still use the 'old' system I had not come across this before so thanks for pointing it out.

I went to the new on Friday morning when I was looking to buy Strix (LON:KETL) and this was the picture:

5d7f65c13a3cbketl.png

I could only get an electronic quote for a small number of shares - anything larger was "by negotiation". Then at 11 58 an AT was reported taking out the 424 at 167.2 and the ask went to 170. I could then get quotes for several thousand shares at 169p.

This was a good illustration of the relation between Retail Service Providers (with whom you deal unless you can access the order book) and the market. They used to be called "Market Makers" but are no longer.

So a couple of points I learned from this-

1) the figures on Stocko are 15 minutes delayed

2) unless you have full-blown level2 you don't know what lies behind the figures - a large number at 168 or 169 or 170?

3) Although the answer was 170 the RSPs were willing to deal at 169 so that still raises some questions for me about how they work in relation to the order book.

4) Nevertheless, seeing the 424 on Stocko did explain why I was unable to get a quote for more than  a handful while that was sitting there.

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