Resting bids above market or offers below market? | Traders Hideout - futures trading strategies, market news, trading charts and platforms

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Resting bids above market or offers below market?

  #8 (permalink)

North Carolina
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
Posts: 644 since Nov 2011

Yeah I thought of a stop limit order. Some exchanges support also peg orders but the question is more about, also, the dynamics that determine who gets the top of book when a level clears. The question is relevant for example in a few scenarios:

You are market making on an exchange that charges some sort of basis point for market orders but the spread is tight. If you get top of book then you can avoid the charges and/or do more volume. For example, on GDAX if I did my calculations correctly you pay $14.53 for a market order per 1 BTC/USD at current prices. This means if you can backfill a move in under $14.53 then it is cheaper to use a limit order even if you have to pay up.

You want to obtain top of book on a new cleared level in the futures. This will give you the ability to hit out into the orders that fill behind you for a low risk/scalp trade and/or do more volume, as well.

You want to chase or aggressively market make a rising move.

Last edited by tpredictor; October 28th, 2017 at 06:35 AM.
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