Limit Order Books

[@arseniy_viktorovich]

I've been watching a ton of trading related videos lately, most with modern graphics, cool effects, etc. But in terms of pure value this video is absolute gold even 9 years later. I wish I'd found this earlier

[@professorholowczak]

Thanks for your comment!

[@itsfarseen]

Well said, this video is pure gold ❤

[@mayankchauhan6680]

You are an exceptional teacher 💗💗💗❤

[@avarmauk]

Thank you for understanding that some of us don't understand anything yet. Excellent video for beginners like myself. Thanks Richard.

[@raviyadvendra7875]

Greatest video on order book

[@mini8334]

Thank you! I have a full understanding of this now. Why am I so intimidated by the concept of equities when the process can be articulated so simply? Well Done!

[@zoruki]

This makes supply and demand theory easy to understand in a detailed process point of view. Thanks.

[@ghrARASH]

thank you. this is really awsome video , worth more than a whole book.

[@nicetomeetugaming7024]

Your explanation was very easy to understand, Thanks a ton for making this video!

[@Harihar_Patel]

This is an exceptional video!

[@williamduncan4917]

Excellent video. Thank you for posting.

[@andrewzhaodonghe]

Thanks for your lecture. It's very clear and practical.

[@sagacitystudies]

just a terrific summary!

[@proudirani]

Excellent and patient explanation!

[@MrAn0nym0us]

Great presentation and info...thanks for this!

[@ElvisRandomVideos]

Thank you for sharing this!

[@viewtifulviewer7282]

cheers!! You explained it so well!!

[@shawndeblanc8096]

Thank you for your work.

[@aliii2403]

Great video

[@MrEstebanEscudero]

Great video!

[@avarmauk]

Question: On some platforms I see a trade feed. Often they are in red and green. What does the trade feed actually show/tell me?

[@professorholowczak]

Usually such feeds are showing you the last traded price of a stock, option, futures contract, etc. Red coloring typically means the latest price is lower than the trade price that preceded it. Green color typically indicates the latest price is higher than the price that preceded it.

[@nurilha]

can a bid limit order take out a ask limit order, providing the bid price = ask price? So far we have only seen market order taking out limit order.

[@professorholowczak]

Sure - these are actually called "Marketable Limit Orders". For example placing a limit buy order where the limit price is the same as the current best asking price (at the moment you place the order). In the best case, your limit buy order is filled at the ask price. In the worst case, if someone else beats you to the best ask price, your limit buy order will appear on the book.

[@_suraj23]

very informative! thanks

[@faith5052]

Thank you Brother

[@罗丹-e7e]

Very useful. Thank you so much!

[@SCH0K0S0SSE]

i finally got it thank you so much!

[@Ccieordie_arteq]

market orders CAN be filled by limit orders, but that is not always the case.

[@sampercy6089]

So is there a place for you to see market orders that are entering the market?

[@professorholowczak]

Thanks for the question. A question back is: Who is "You"? If "You" are a retail investor, then no you cannot see what is going on inside of the broker's order routing decision or the exchange's order book. You would only be able to see your limit order once it is posted to the exchange's order book. On the other hand if "you" are a broker, then you can definitely see an incoming market order and decide how you want to route it (internalize it, or route it to an exchange or dealer). If "you" are an exchange, then you can definitely see an incoming market order and it is your job to execute that order against the best price(s) available in the order book.

[@sampercy6089]

Hello Professor, thank you for your detailed reply. Much appreciated. I would like to email you about a few more topics I have been thinking about if that’s alright with you. Is the email listed on your website still valid?

[@professorholowczak]

@@sampercy6089Sure

[@bluevincy4104]

Quality!

[@shubhashreepkschoolofbusin6819]

Excellent. Can you please give me some inputs on my PhD

[@enveraaa8414]

Thanks

[@bluemoonband1]

How about iceberg hidden orders ?

[@professorholowczak]

An iceberg order is something your broker does. You put in a limit order at a large size (say 5,000 shares) and your broker will send only small parts of the order to the exchange at one time.

[@shivani3206]

good