HOMEWORK ALERT – Complete your homework before starting Class 11

DTC: #10 Homework

Completing your homework is for your own benefit.  Answers should be in Paragraph form.  If you want to succeed as a trader, you have to show motivation & discipline.

1. Please describe Level 1 and Level 2.
2. If you send an order through a market maker such as EDGX, and EDGX isn’t on the level2, what will happen to your order?
3. What does a 20k seller mean?  What does a 20k bid mean?
4. Do you feel in combination with strong patterns such as bull flags that you could scalp trade based on level 2 and time & sales tape reading?
5. How do you plan to set up your hot keys?
6. How can you tell when a stock is about to be halted?
7. What types of orders will you be using?  Buy Stop, Limits, Market orders, Stop orders? Why?
8. Describe a “thin” level 2 and a ”thick” level 2.

Welcome to your DTC: #10 Quiz

1. If you are holding 3k shares at 6.20, and you suddenly see a big bid of 300k shares pop up at 6.40, what do you do?
2. If there is a 300k bidder, what could that mean?
3. If you are in a long position at 2.40 and you see a 88k seller at 2.48, what do you do?
4. What type of level 2 is typical of a low float stock?
5. What is the most important hot key?
6. Trader A says you can collect an ECN Rebate anytime you sell on the ask, Trader B says you can collect an ECN rebate anytime you send an order and select no-reroute.  Who is right?