Reading Level II

[roguetrader]

I have a question for all NYSE Level II and tape readers alike:

a trade gets printed on a NYSE stocks for, let's say, 1000 shares at 40 and you use a basic quotes provider like interactive brokers. Now, is that print a cumulative print coming from several different exchanges and ecns, or a true NYSE print?

just wondering how this tape reading thing works, as I think NYSE prints are what tape readers should be most concerned about, correct?

thanks

[ElliottWave]

i dont even know what the difference is between level 1 and level 2. dont kill me...im new!!

[daytraderB]

hello elliottwave,

don't worry about it. I didn't know either what was the difference between level 1 and 2 when I first started.

investopedia talks about this extensively. I will summarize it for you a little bit:

Quotes access levels consist of:

1. Level 1 quotes are offered by most basic quotes software packages. they show the composite bid/ask of your stock of choice. You only see the prices and not who's quoting them
2. Level 2 takes it a step further: it shows all bid/ask prices and the market makers/exchanges/ecns quoting them. on the left, you have all market participants who are willing to BUY at a certain price, whereas on the right side you have those who are willing to SELL at whatever price
3. Level 3 has the added ability to enter quotes, execute orders and several other things. access to a Level 3 workstation is restricted to NASD member firms functioning as MM only

hope this helps

[BlueChips]

Originally Posted by roguetrader

I have a question for all NYSE Level II and tape readers alike:

a trade gets printed on a NYSE stocks for, let's say, 1000 shares at 40 and you use a basic quotes provider like interactive brokers. Now, is that print a cumulative print coming from several different exchanges and ecns, or a true NYSE print?

just wondering how this tape reading thing works, as I think NYSE prints are what tape readers should be most concerned about, correct?

thanks

it most likely is a composite. now if you are using IB, I know they let you choose which market you wanna get quotes from. for example, if you want to get a composite quote you will choose SMART. Otherwise, you will choose ARCA, etc

hope this helps

[roguetrader]

thanks for your help guys.

[TapeReader]

Originally Posted by roguetrader

I have a question for all NYSE Level II and tape readers alike:

a trade gets printed on a NYSE stocks for, let's say, 1000 shares at 40 and you use a basic quotes provider like interactive brokers. Now, is that print a cumulative print coming from several different exchanges and ecns, or a true NYSE print?

just wondering how this tape reading thing works, as I think NYSE prints are what tape readers should be most concerned about, correct?

thanks

yes, that's probably a cumulative print.

tape reading NYSE stocks usually does not take into account trades occuring through ECNs. the idea of tape reading is to follow and trying to understand what the specialist is doing through his/her buying/selling on/at the bid/ask. ECNs trades are mostly noise and usually placed by the general public.