SETS and SETSQX order book system16 Oct 2019 12:33
SEE is listed on SETSQX which is a trading platform for less-liquid stocks than SETS which is the platform for the large cap stocks like Marks-Spencer etc
The order book is the beating heart of both trading platforms and allows liquidity providers (MM-Market Makers and DMA traders - Direct Market Access) to post buy and sell orders
Since SEE is on SETSQX there are only MMs of which there are 9 at present
The left side of the order book is the buy side or bid
The right is the sell side or offer
Those wanting a rising price are looking for an active book with active MM's bidding on the left side (active bid by moving up their bid-buy price...the more MM's bidding up the stronger the price is...of course the offer is the sell side..if the a MM is bidding up and also moving up his sell price his appetite for stock is good...if the MM is sat like below bid and off-touch (current price) he's uninterested in trading, lacks appetite and remains static...
example
early morning it was
2 v 2
we're looking for active MM bidders
so if the order book went to
2 v 1 that means that one MM is stepping on the offer and demanding more for his stock
if the book goes too 3 v 1 it means a MM's upped his bid and his willing to pay more for stock..his appetite's increased
of course the book can move both ways
upping the bid (increased appetite) and downing the bid (lessening appetite)
upping the offer (demanding a higher price which is +, cutting the offer is negative
the OB is not a price predictor, it merely shows the order book at a point in time
if the main MMs on the book jump onto the bid and raise their offer then we're off to the races....eg,, 4 v 1 - lovely but the MM's must be pretty active...we want to see ACTIVE bidding
If the MM's step off their bid, and step off the offer eg 1 v 4 - that's depressing!
I can't explain it better than that fellas..I'm still a novice at this, caveat....and please don't base your buy-sell decisions on the information I post on here....my postings are merely for information purposes only
I'd like to see the large MM's bidding..Cenkos, Winterfloods, Peel-Hunt...Panmure is always sat way off touch (current price), he may as well disappear up his own rectum for all the use they are
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