What causes the ASK and BID price to change? | Traders Hideout


futures.io - futures trading strategies, market news, trading charts and platforms


Traders Hideout


Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons




 

What causes the ASK and BID price to change?

  #9 (permalink)

Milwaukee, WI
 
 
Posts: 88 since Jan 2014
Thanks: 4 given, 43 received

How do inside bid and ask prices change?

How do inside bid and ask prices change? The inventory of bids or asks at a certain price get added to or pulled. If the inside bid is at, say, 50.25 and all the bids are pulled then the new inside bid is at the next highest bid, say 50.24. Let's say there are 100 bids and 90 get consumed - 90 market sells come in. Then there will be only 10 left. Those 10 could either be consumed by market sell orders or be pulled.

It should be noted that it takes an actual trade at a lower price for the "last" trade to go down on the chart. Time and sales only indicate actual trades. The DOM can, theoretically, move all over the place without trades being made. But in a liquid market it stays centered around current price.

The big boys try to fool people by adding and pulling bids and asks, by showing more (or less) than they actually intend to trade. Deception is part of the game.

Reply With Quote