FOREX LEVEL II

[TheRumpledOne]

If you are not trading at a broker who gives you Level II then you are giving your money away.

[jgear55]

i find the forex level 2, pretty much useless , the price level SIZE changes so randomly and there is only one ecn per level. so it is pretty much useless for reading it for scalping, as no time of sales.

[watzdorf]

Avery,
how do you use LvL II in forex? What should I look/watch for?
Thank you,
alex

[TheRumpledOne]

I just posted that to show the REAL SPREAD as opposed to the artificial spread.

Level II just shows you the real price level.

Time and Sales is separate from Level II!!

What do I look for? I just use it to keep an eye on things.

[BC]

has anyone ever found any info or books on level II or dome trading?
Perhaps I am just slow, but I have never caught on as how to use this feature in trading. I have read articles of people using only the level II for trading, without charts. But for the life of me cannot put 2 and 2 together, it still comes out as -1

[TheRumpledOne]

You can find Level II by "googling".

But just know the LEVEL II isn't always what it seems to be.

There are HIDDEN ORDERS, Auto Refresh, Ice Berg orders, etc...

You can't always believe what you see.

Level II is still ok for trading stocks on ECNs but you still have to know what going on.

[Trade Viper]

Hello, L2 is worthless in FX, and just about anything else now. Back when L2 first came out you could see who the Axe was on L2 and gun, follow, or pick off the Axe, so if CANT was the Axe, and was continually at the Bid, if you went long you would just be following the Axe, positive expectancy at its simplest. However the big houses like CANT were eventually allowed to execute anonymously on the ECN's and that killed L2 as a tool, it is still neat to look at but no longer transparent.

L2 on Forex is just a waste of time, you are in a hub, you may be executing against the same bank or market maker over and over again. This generally depends on size and frequency of trades, if you are swinging for the fences 1/2 yard or so per month, you will have more banks opened in your hub, but typical retail may only see one bank. The feed has all of the banks, but execution is different, and no ID on the bank.

The Ever Knowledgeable VIPER

[BC]

Thank you for the input guys