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Help with Commsec market depth

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bonkerrs

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Hi all

I'm after some help with understanding the Commsec market depth screen. Below is a screenshot of EWC.

If I had a sell order for 0.570, is there a way to tell which of the 4 sellers I am?



The other question I have... you guys are going to have a laugh about this one. If there are 5 buyers at 0.515, why doesn't the sell side show sellers at 0.515 - it starts at 0.525? Basically, I'm asking how to read the market depth?!

There are 98 Buyers (2278303 units) and 48 sellers (1153890 units). Because there are more buyers then sellers - means the SP is being pushed up?
 

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Hi,

You need commseciress to see the individual orders, it doesn’t identify which is yours but you can normally work it out. The sellers are waiting for the buyers to match them and vice versa, what pushes the prices around is the party that is most determined.

Personally I find it hard to read the depth in a stock order book as a big seller may slowly feed the orders so what looks like more buyers may be misleading, and of course vice versa.

Perhaps someone more experienced in reading the depth may help you out there.
 
Amount of buyers and sellers doesn't really matter

There are none at .515 because if there were their trades would be activated against the ones sitting there

So the price wont move below .515 until those buyers have been sold to Ie: The ask drops to .515 by sellers selling at that price

Why do you need to know which of the sellers you are? I assume you would already know which one you are
 
also cutz is right

& a big s'fund or something might move in and buy 1,000,000 shares at market and destroy the whole DOM

So its never certain

I'd like to see what TH has to say re; this topic
 
bonkerrs said:
If there are 4 sellers. Doesn't it matter where you are in line? You may be next (1st) to be executed or if you're 4th, you might miss your sell if the price moves the opp way.

1, 2, 3 or 4?!!
Click to expand...


Oh i see what you are asking
You'll need iress to see the order
 
bonkerrs said:
If I had a sell order for 0.570, is there a way to tell which of the 4 sellers I am?
Click to expand...

Lets say there are no sellers at 0.57.
Then you put in a sell order at 0.57, so now there is 1 seller at 0.57 (you).
5 minutes later you notice there are now 4 sellers at 0.57.
In this scenario you would know where you are in the queue, 1st.
It is a first-in, first-executed basis.

So, if you are watching the live market depth carefully and you note how many sellers are at the price you are about to put in your sell order at, you will know where in the queue you are, and how many sellers and the amounts are ahead of you. If you are not watching the market depth queue this carefully (i.e. you may have a life!) then knowing where you are positioned in the queue is more difficult.
 
bonkerrs said:
The other question I have... you guys are going to have a laugh about this one. If there are 5 buyers at 0.515, why doesn't the sell side show sellers at 0.515 - it starts at 0.525?
Click to expand...

The market for shares in EWC is, ... (wait for it) ... a market. For a trade to take place a seller and a buyer must agree on a price. In the scenario you have painted there are buyers willing to pay 0.515 but the sellers want 0.525.

The market in shares in EWC is pretty much the same as any other market.

Imagine the market in brand-new, bog-standard, white Ford Falcons. On a Saturday morning within a 15 km radius there might be 5 Ford dealers wanting to sell such a car (each of the cars is identical). Also, there are say 4 potential buyers for brand-new, bog-standard, white Ford Falcons wandering around these yards kickin' tyres.

A deal is only going to be struck once a buyer and seller can agree on a price, right? The buyers may want to pay $32,000 for the car, and the sellers may want $33,000 ... now until one, or the other, or both, moves on price there will be no trade. Eventually one of the buyers will quite tyre-kickin' and put in a bid at $32,500, and the seller may then accept this price and there you have it, a deal is struck. (And then the dealer loads the buyer up with useless after-market accessories for $8,000, but that's another story). Exactly the same process occurs in the share market, except the haggling is over the price of a share, not a car. (And, of course, there are no after-market accessories ... actually... wanna buy an Options course for $7,000?)

Of course, in the Ford Falcon scenario none of the other buyers or sellers know a deal has been struck, whereas in the market for EWC shares once a deal is struck the whole world is informed of it through the course of sales data, which is why the stock market is so much easier to understand, right?
 
bonkerrs said:
There are 98 Buyers (2278303 units) and 48 sellers (1153890 units). Because there are more buyers then sellers - means the SP is being pushed up?
Click to expand...

OK, this answer is easy. Sometimes.
 
Yeah for sure!!

Timmy said:
...(And, of course, there are no after-market accessories ... actually... wanna buy an Options course for $7,000?)
Click to expand...
Been there.


Thanks for the reply Timmy!
 
On the subject of stock depth, I’ve been watching MQG, (again) and there seems to be a level that is getting topped up constantly, $34 on the bid, (for about 20 min)

So from this information one can assume that this could be a good level of very short term support, I guess when the volumes sitting at that level are chewed through one can expect a plunge.

Anyone care to comment ?
 

but what if there are already 5 in the queue and you put your order in. So obviously your the 6th in line... but you cant really tell after say the 1st in line order goes through then someone puts an order behind you... you could be anywhere from 2nd to 5th in reality, and its more confusing when the line has 30+ buyers...
 

The above screenshot is from a few moments ago, the market isn't open yet.

Anyway to tell where the market will open between the buy/sell in position 1?
buy = 36.00 (1 buyer) and sell = 32.00 (13 sellers).

Continuing my research to understand DOM.

Can someone with a better DOM screen post a screenshot? Just interested to see what a properly detailed DOM shows compared to the Commsec baisc one. I need to focus on one area of research at a time, too scatterbrained at the moment. Thinking about concentrating on DOM.
 

I am not sure I know what you are asking here ... but, if you are watching it carefully enough, and keeping track carefully enough, you should have a pretty good idea. In fact, I am sure you could set up some sort of spreadsheet to help you keep track if you really wanted to.

But why would you bother? Is knowing exactly where you are in the queue adding a lot (or any) value to your trading? If your answer is yes then I am sure you could come up with something, necessity being the mother of invention and all?
 

Knowing where you are in the queue will tell you how close you are to obtaining the stock at that price... when the queue is over 50+ buyers long it would be good to know
 
jono1887 said:
Knowing where you are in the queue will tell you how close you are to obtaining the stock at that price... when the queue is over 50+ buyers long it would be good to know
Click to expand...

Fair enough.

Cutz posteds this earlier on in the thread, maybe commseciress could help?

cutz said:
Hi,

You need commseciress to see the individual orders, it doesn’t identify which is yours but you can normally work it out.
Click to expand...
 
probably could, but i cant afford the $80 a month for it, and i dont make the minimum no. of trades a month to get it for free
 
hi

on this topic i am wondering if when you amend an order for the amount of shares required , say add a few thou or take a few off . whether that would then place you at the end of the queue again or if the order would stay in the same position

thanks
 
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