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Re: kutchmaster post# 50939

Friday, 09/19/2014 4:55:38 PM

Friday, September 19, 2014 4:55:38 PM

Post# of 112560
It was explained to me before, I'll try to explain it in dscr numbers:

MMs list only the block of shares they have at the best price, eg. Nite with 500k @ .0023, but they may also have 500k @ .0024 that you wont see on level 2. Because they only show what block they have at the best price. Then if someone executes a market buy for 1 mil they get half 23s and half 24s. But if you execute a limit order for only 500k shares at only .0023, they might then move their .0024 block down to .0023 to entice you to buy those, since you are only buying at that price with limit orders.

Thats why I chuckle when people say its so thin to .0030... level 2 doesnt show how many shares and blocks each MM has orders in to sell on each tick. Wont see it until we move up. We only see the best block they have at that given moment, not the other blocks that could be hidden at higher prices.