InvestorsHub Logo

SPM555

10/29/14 11:59 PM

#15237 RE: ThatBobGuy #15236

When it comes to what you see on the L2s, all that is visible is the highest bid price from an MM and the lowest ask price from an MM, everything else will be hidden until that order/price becomes the highest bid/ lowest ask. Since you have your ask price so high up, you won't be able to see it if there are any other orders routed through that MM (AMTD if I remember correctly). That's why you'll only see each MM represented once on each side (bid/ask), though in reality there are many more orders that simply aren't visible yet.

If we see a few market makers sitting at .015 on the ask then nothing til .03, that doesn't mean there aren't more sell orders sitting between .015 and .03. Once those .015s are sold, those MMs will 'move up' to whatever the next order is in their book, however they're not really moving up, those orders likely were there before and they just then became visible because the lower sell orders were filled.

Long story short, most of the time you will not see your sell order represented on the L2s if you place it very high up, assuming there are other sell orders through that MM sitting lower than yours. Heck, all you have to do is put your order a fraction above whatever the lowest ask is (for your specific MM), and then your order becomes 'invisible' until the lower orders get filled or they decide to move up on their own.