Replies to post #47175 on Plastic2Oil Inc (PTOI)

[Risicare]

Currently there are no sell orders between 2.39 and 5.00.


L2 only shows the top of the MMs book so that could easily and likely not be true.

[Estimated_Prophet]

That's a ridiculous statement you made about no sell orders between 2.39 and 5.00. One market maker can't show where all their sell orders are on level 2, so they show the nearest one.

[BeerIsGood]

z - you know better than that, there can be and most likely are a pile of sell orders from the top 4 MM between $2.39 and $5.

[Steady_T]

Level two only vaguely represents orders. If I put a sell order in at $5 right now it would not show up in LVL II because it will be routed to NITE by my broker. Nite is already on the inside ask at $2.22, so my order goes on NITE's LVL III screen but would not show on LVL II.

In my experience LVL II conveys less information than many people believe.

On an very actively traded stock like AAPL and that sort LVL II can give you a sense of a move up in price but only in terms of a few cents. Watching the tape frequently will give you just as much or more information.

As far a LVL II for a thinly traded stock like JBIIE, LVL II tells you not so much.

For example just now AUTO stepped in as inside bid 4 cents above NITE..... what does that mean? It means a single order has come into AUTO when and if it clears, the inside bid will drop back to NITE's $2.11. Seeing that there hasn't been a trade in JBIIE since 12:21 EDT that bid is mostly posturing by somebody.

[Scandle34]

level II shows the lowest sell or highest buy on the books of a given MM. NITE may represent (be routed) orders from other sellers higher than the one they are showing, and so on.

You need the fabled level III to see the full book.