Replies to Post #9257 onLifeist Wellness Inc (NXTTF)

Replies to #9257 on Lifeist Wellness Inc (NXTTF)

05/03/18 1:18 AM

#9259 RE: Penny Harpoon #9257

The OTC L2 doesn't mean much on these multi-market stocks.

The vast majority of trades occur on TSX.V

Most OTC orders don't get filled at OTC directly, they get transferred to TSX.V, and at a premium. That means when they transfer your order to TSX.V it will be at least a penny lower on the bid, or a penny higher on the ask.

OTC will run a 2-3 cent spread with TSX.V running 1 cent.

When you see bid whacking occur at OTC from "the invisible seller" it's usually just sell orders from Canada being filled at OTC. (orders transfer both ways)

With OTC mostly just tracking the TSX.V price there will be a lag at OTC in response to price movement. For example if 2 cents gets knocked off the bid at TSX.V and the price moves down, the standing bids at OTC may then amount to an ask slap at TSX.V depending on the timing of it.

This lead lag thing across the two markets seesaws back and forth and gives the MM's a way to work the price difference between the two.

The main thing is that if you are only seeing the OTC side of it you're not seeing 80% or more of the orders. You're really only seeing the effect those orders have on OTC after they execute, and OTC mostly just shadowing the TSX.V action.

These are the orders you're not seeing, and this is a screenshot during the off hours.