6

A buy limit order is an order to purchase a security at or below a specified price. That guarantees that you pay no more than your limit price. The only downside risk that you face is that your order is filled and the security's price then drops like a rock. However, that's investment risk and it that has nothing to do with the level of quotes that you ...


4

In general, "painting the tape" or "spoofing" is illegal, and any broker that allows their client to submit such orders is subject to penalties. The client themselves is also subject to penalties, including any profit they may have gained from engaging in such activities. A clear example is the case of Navinder Singh Sarao whose spoofing was believed to ...


3

There can be plenty of non-posted liquidity. So OTC orders that didn't match posted limit orders can occur, but so can trades between the posted spreads that just happened faster than the visual representation of the Level 2 will show. The NBBO is 180 - 185 and someone sent an order for 183.75 and someone saw that order coming to the exchange - who also didn'...


1

An automatic trade (AT) is a normal on-exchange trade, created during regular trading by the matching engine from order(s) in the order book. An ordinary (O) trade is a normal off-exchange trade, agreed between the counterparties elsewhere and then reported to the exchange. I don't think a blank type has a standard meaning; you may need to check with your ...


1

I don't know about the Pink Sheets but on major exchanges, hiiden orders offer traders the ability to disguise the size of their order, displaying only the order size that they want. Iceberg Order: Iceberg orders are large orders that are split up into lots or small sized limit orders. They are split up into visible and hidden parts, with the latter ...


1

Since no one has answered, I will provide an incomplete answer based on what I have learned since the question was asked. When someone says "Level 2 quotes", do they mean (1), (2), or (3)? Is "Level 2 quotes" ambiguous? According to the Nasdaq Level 2 web page: Nasdaq Level 2 provides the top-of-file position for Nasdaq exchange ...


1

Unless you are trading illiquid securities or very large quantities, level 2 quotes are not useful. Particularly if you will be using limit orders.


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