Thread: Level 2 access

Guys,

Can someone Assist me with an understanding of the Forex market. Im bit confused....

Level 1 access is viewing candles with tools such as Mt4, MT5....

I presumed level two access is visiting the order publiion and complete market depth of this market. Can you get level 2 gain from a bank dating? From a broker relationship? If so what order publiion do you visit? Can you see the order publiion of the entire market, where is this order publiion? Can it be spread over real exchanges?


Can someone clarify?




Cheers
J

Do you think that you will need the order book to succeed in Forex trading?

KP

No, I've got an algorithm which does not require it, but that I do believe theres an edge to having it, even if you know what to do with this.

Originally Posted by ;

NoI have an algorithm that doesn't need it, but that I do believe theres an edge to having it, even if you know what to do with it.

FX isn't a centrally traded market. Therefore, if you want to utilize it for scalping ala paul rotter you will have difficulty finding reliable source of information.
Besidesthere are things such as iceberg and HFT companies making the information much more useless

some big traders utilize it for sweeping the book, so the major function of LV two in fx market would be to see that the inventory.
Dukascopy has lv 2 information up to ten levels (1 level each pipettes), so that's more or less 1 pip above/below spread.
I never find another deeper lv2 for retail trader, then again I dont have access to bloomberg terminal or ebs workstation so I cant comment on the way that goes for the institutional level.

That is my personal opinion and im speaking in terms of normal manual trading, if you can discover any edge trading with it good for you.

Originally Posted by ;

to break this down, should I subscribe to Lmax and watch their order book basically I'm seeing the order book of their clients. If we state the daily traded volume in Forex is roughly 7.7 trillion or maybe more, just how much will Lmax be and exactly what ratio? Is their order book a true comparison of the true market? If a bank trader does a currecy trade along with other bank does their trade ever hit the market? Or is it done behind closed doors? If I moved to broker, I guess I would observe the order book of their client base? Where can I see a true order book bloomberg...

Lmax provides 5 lvls on dom.
Dukas 10 but not constant(Like ctrader brokers aka FXPRO).
FXCM also has a wigdet for there platform I think also for mt4 not certain.
As for your TS nobody provides you that. Perhaps through api but dont have seen that ever.

If you would like lvl2 you move to futures. Information comes from the market.
Dom is only as long as you scalping with two cups sl and 5 tp. The majority of Dom orders are spoofing.
As for TS after2009 the protocol shifted and banks also shift from manual to digital. So the old times you will possibly see on your Tape an order of 100 lots. Now you see (1 1 1 1 2 5 1 1 14 2 2 1 3 etc.. .) =100.

And in the end there is no key in LVL2 or any LVL most bank traders utilize easy platforms, easy candlesticks support resistance . They have of course access to their orderbook that includes their clients ranks, because this really is their occupation, they manage risk and make commissions. And generally they dont exchange against you or any of their customer. They dont care, they create markets. No proprietary trading. Front run is within trading which is no permitted since regulations are very tight. Yes there is manipulation. Doesnt mean always comes with a profitable end. Banks dont care about money, they have credit. They care about the shareholders volume and earnings they deal.

Originally Posted by ;

Guys, Can somebody help me with an comprehension of the Forex market. Im bit confused.... Level 1 accessibility is viewing candles using tools like Mt4, MT5.... I presumed level two accessibility is visiting the order book and complete market depth of the market. Do you get level 2 gain from a bank relationship? From a broker relationship? If so what order book do you visit? Would you find the order book of the whole market, where is this order book? Can it be spread over actual exchanges? Can somebody explain? Cheers J

Yeah lvl1 are the basic information high low close etc.. Lvl2 has is Time And Revenue which means Bid and ask discretionary. And there is also the Depth of Market. The first shows you that the market orders the second the limit orders.

These data come from your broker that could be a bank also (high capitalized accounts), or a data feed provider.
Fores is decentralized as others already have stage out. The market me and you that can access is a proxy of the inter bank market. Its called inter-bank since it is that, between banks. But you dont miss anything, no secrets. Everything that has happen is already facing inside the charts.

Originally Posted by ;

Guys, Can someone assist me with an understanding of the Forex market. Im bit confused.... Level 1 accessibility is seeing candles using tools like Mt4, MT5.... I thought level 2 accessibility is seeing the order publiion and complete market depth of the market. Do you get level 2 gain from a bank dating? From a broker connection? If so what order publiion do you visit? Can you find the order publiion of the entire market, where is this order publiion? Can it be spread over actual exchanges? Can someone clarify? Cheers J

Google Pit View or search it on YouTube.

Thank you for your comments.

I cant wait to get stuck into large time information.

Currency Market trading is straightforward. Please make it complied. Just create green pips.

thanks

To break this down, if I register to Lmax and see their order book basically I'm seeing the order publiion of their clientele. If we state the daily traded volume in Forex is about 7.7 trillion or maybe more, how much will Lmax be and exactly what ratio? Is their order book a true comparison of the true market? If a bank trader does one currecy trade along with other bank does their commerce hit the market? Or can it be done behind closed doors?

If I went on broker, I suppose I'd see the order publiion of the client base? Where could I see a true order publiion bloomberg or Reuters would that be the very best?




-J