I've been watching a ton of trading related videos lately, most with modern graphics, cool effects, etc. But in terms of pure value this video is absolute gold even 9 years later. I wish I'd found this earlier
Thank you! I have a full understanding of this now. Why am I so intimidated by the concept of equities when the process can be articulated so simply? Well Done!
Usually such feeds are showing you the last traded price of a stock, option, futures contract, etc. Red coloring typically means the latest price is lower than the trade price that preceded it. Green color typically indicates the latest price is higher than the price that preceded it.
Sure - these are actually called "Marketable Limit Orders". For example placing a limit buy order where the limit price is the same as the current best asking price (at the moment you place the order). In the best case, your limit buy order is filled at the ask price. In the worst case, if someone else beats you to the best ask price, your limit buy order will appear on the book.
Thanks for the question. A question back is: Who is "You"? If "You" are a retail investor, then no you cannot see what is going on inside of the broker's order routing decision or the exchange's order book. You would only be able to see your limit order once it is posted to the exchange's order book. On the other hand if "you" are a broker, then you can definitely see an incoming market order and decide how you want to route it (internalize it, or route it to an exchange or dealer). If "you" are an exchange, then you can definitely see an incoming market order and it is your job to execute that order against the best price(s) available in the order book.
Hello Professor, thank you for your detailed reply. Much appreciated. I would like to email you about a few more topics I have been thinking about if that’s alright with you. Is the email listed on your website still valid?
An iceberg order is something your broker does. You put in a limit order at a large size (say 5,000 shares) and your broker will send only small parts of the order to the exchange at one time.