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Level 2 access

  • #1
  • First Post: Mar 28, 2018 8:39am Mar 28, 2018 8:39am
Guys,

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

Level 1 access is seeing candles using tools such as Mt4, MT5.....

I thought level 2 access is seeing the order book and full market depth of the market. Do you get level 2 access from a bank relationship ? from a broker relationship ? if so what order book do you see ? would you see the order book of the whole market, where is this order book ? is it spread over real exchanges ?


can someone explain ?




Cheers
J
  • #2
  • Mar 28, 2018 9:40am Mar 28, 2018 9:40am
to break this down, if I subscribe to Lmax and see their order book basically I am seeing the order book of their clients. If we say the daily traded volume in Forex is about 7.7 trillion or maybe more, how much will Lmax be and what ratio ? is their order book a real comparison of the true market ? if a bank trader does a currecy trade with other bank does their trade ever hit the market ? or is it done behind closed doors ?

If I went to broker, I guess I would see the order book of their customer base ? where can I see a true order book bloomberg or Reuters would that be the best ?




-J
  • #3
  • Mar 28, 2018 9:47am Mar 28, 2018 9:47am
Do you believe that you need the order book to succeed in Forex trading?

KP
Do your homework, follow the footprints of smart money
  • #4
  • Mar 28, 2018 10:14am Mar 28, 2018 10:14am
No, I have an algorithm that doesn't need it, but I do believe theres an edge to having it, if you know what to do with it.
  • #5
  • Mar 28, 2018 10:40am Mar 28, 2018 10:40am
Quoting bobastic
No, I have an algorithm that doesn't need it, but I do believe theres an edge to having it, if you know what to do with it.
FX is not a centrally traded market. so if you want to use it for scalping ala paul rotter you will have a hard time finding reliable source of data.
besides, there are things like iceberg and HFT firms making the data much more worthless

some big traders use it for sweeping the book, so the main function of LV 2 in fx market is to see the inventory.
dukascopy has lv 2 data up to 10 levels (1 level per pipettes), so that's more or less 1 pip above/below spread.
i never see another deeper lv2 for retail trader, then again i dont have access to bloomberg terminal or ebs workstation so i cant comment on how that goes for the institutional level.

this is my personal opinion and im speaking in terms of normal manual trading, if you can find any edge trading with it good for you.
  • #6
  • Mar 28, 2018 3:13pm Mar 28, 2018 3:13pm
Quoting bobastic
to break this down, if I subscribe to Lmax and see their order book basically I am seeing the order book of their clients. If we say the daily traded volume in Forex is about 7.7 trillion or maybe more, how much will Lmax be and what ratio ? is their order book a real comparison of the true market ? if a bank trader does a currecy trade with other bank does their trade ever hit the market ? or is it done behind closed doors ? If I went to broker, I guess I would see the order book of their customer base ? where can I see a true order book bloomberg...
Lmax gives 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 sure.
As for the T&S no one gives you that. Maybe through api but i dont have seen that ever.

If you want lvl2 you move to futures. Info comes from the exchange.
Dom is only if you scalping with 2 ticks sl and 5 tp. Most of Dom orders are spoofing.
As for T&S after2009 the protocol changed and banks also shift from manual to electronic. So the old times you will maybe see in 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 secret in LVL2 or any LVL most bank traders use simple platforms, simple candlesticks support resistance etc. They have of course access to their orderbook which includes their clients positions, because this is their job, they manage risk and earn commissions. And in general they dont trade against you or any of their client. They dont care, they make markets. No proprietary trading. Front run is inside trading which is no allowed since regulations are very tight. Yes there is manipulation. Doesnt mean always has a profitable end. Banks dont care about money, they have credit. They care about the shareholders earnings and volume they deal.
  • #7
  • Mar 28, 2018 3:22pm Mar 28, 2018 3:22pm
Quoting bobastic
Guys, Can someone help me with an understanding of the Forex market. Im bit confused..... Level 1 access is seeing candles using tools such as Mt4, MT5..... I thought level 2 access is seeing the order book and full market depth of the market. Do you get level 2 access from a bank relationship ? from a broker relationship ? if so what order book do you see ? would you see the order book of the whole market, where is this order book ? is it spread over real exchanges ? can someone explain ? Cheers J
Yeah lvl1 are the basic info high low close etc. Lvl2 has is Time And Sales which means Bid and ask traded. And there is also the Depth of Market. The first shows you the market orders the second the limit orders.

All those data come from either your broker which can be a bank also (high capitalized accounts), or a data feed provider.
Fores is decentralized as others already have point out. The market you and me which can access is a proxy of the inter bank market. Its called inter-bank because it is that, between banks. But still you dont miss anything, no secrets. Everything that has happen is already in front of within the charts.
  • #8
  • Mar 28, 2018 3:26pm Mar 28, 2018 3:26pm
Quoting bobastic
Guys, Can someone help me with an understanding of the Forex market. Im bit confused..... Level 1 access is seeing candles using tools such as Mt4, MT5..... I thought level 2 access is seeing the order book and full market depth of the market. Do you get level 2 access from a bank relationship ? from a broker relationship ? if so what order book do you see ? would you see the order book of the whole market, where is this order book ? is it spread over real exchanges ? can someone explain ? Cheers J
Google "Pit View" or search it on YouTube.
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  • #9
  • Mar 28, 2018 5:40pm Mar 28, 2018 5:40pm
thanks for your comments.

I cant wait to get stuck into big time data.
  • #10
  • Mar 29, 2018 5:13am Mar 29, 2018 5:13am
forex trading is simple. Please dont make it complicated. just make green pips.

thanks
  • #11
  • Last Post: Mar 29, 2018 5:25am Mar 29, 2018 5:25am
Quoting antonsatu
forex trading is simple. Please dont make it complicated. just make green pips. thanks
I think best comment ever.
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