Verbally quoting the Inside Market...for Scalpers mostly | Traders Hideout


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Verbally quoting the Inside Market...for Scalpers mostly

  #4 (permalink)

Pittsburgh
 
Trading Experience: Advanced
Platform: Ninjatrader
Favorite Futures: ES, GE, M6E
 
Posts: 77 since Jan 2018
Thanks: 79 given, 305 received


iantg View Post
Interesting....

I could see this two ways....

1. (Pertaining to slower instruments, or slower trading times)
I would assume the relevant information would be pertaining to the best bid and best ask. Everyone in the industry would likely be aiming for this, so they would likely skip this part and get right to quoting the volumes resting at best bid / best ask, and then maybe include some information about the last trading volume and specify the bid or ask. I could see this being the information most relevant to describe the current state of the market. But in terms of "verbally discussing it" this would only really be relevant if we are talking about slower moving markets, or slower time periods on fast moving instruments.

2. Because I have seen the ES flip price levels 7 times in 1 second..... (Human Speed Hypothesis)
So unless you are the guy that used to do the micro-machines commercials back in the 80s, (Dude could rattle off 200 words a second) you will likely not be able to be accurate / and in real time quoting which price level the market is at. This leads me to believe that one would likely do a better service explaining to someone the current state of the market by providing a range. "The market has oscillated between 2000 and 2002 over the last 30 seconds" So if we are talking ES on the overnight session then yeah, I could see how someone could provide every detail with 5 minutes left for someone to scratch there chin and be like... "Okay, well I suppose in that case, I will do x,y,z" But if we are talking US cash open, or Close.... telling someone the current price level would be ridic.

Interesting topic. I will be curious to know the answer.

Ian


Thank you for the response. Keep in mind there are squawkboxes out there that verbally quote markets like the ES or faster.

I suspect many traders that learned on the screen or away from exchanges maybe never had a real need to quote verbally, either because they don't talk to other traders or its not necessary w/ their style. It's definitely true that the longer your timeframe the less you'll probably every talk about the inside market.

Also I should mention I'm not trying to call anyone out for being wrong. Maybe I'm wrong. I'm really kinda curious to see if there are any former CBOT or NYMEX locals out there that will quote the same way I do.

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