Looking to follow the “Smart Money”? Look no further. Our Depth of Market Price Feed is designed to give informed traders the perfect tool for determining market movement with precision that goes beyond what any technical indicator can offer you.
The market is made when someone’s Bid price meets someone else’ AsK (or offer) price. However, at any given time there are millions of Bids and Offers floating in the market for variable volume (amounts). Bank A may be offering 100,000 (1 Lot) EURUSD at Price X while Bank B may be offering the same volume at price Y.
The Level 2 market data gives you a bird’s eye view of how many such offers and bids are floating for any particular instrument at any given time across X number of liquidity providers.
Knowing which banks are buying (competing at the Bid) and which are selling (competing at the Ask) can provide you with valuable insights into which direction the market is moving.
Our Level 2 Depth of Market Feed is delivered via FIX API account providing up to 25,000 updates every second… So if you have the computing power to take all this information and use it, you will always be one step ahead of any other trader in the market.
Having access to our powerful depth of market feed is like owning a nuclear weapon. True power does not lie in owing such a powerful tool…but in when and how best to use it.
Several books have been written on this subject matter and we encourage all our traders consider Level 2 to first familiarize themselves with the Order Book and the Depth of Market and what it means.
However, our Level 2 Depth of Market Feed can be used for a number of purposes, including, but not limited to:
Fast Feed for Latency Arbitrage
We have venues in NY4 as well as LD4 with Zero ms ping times. Connect to us as your fast broker and predict price movement on a slower broker suitable for arbitrage before it gets there.
Statistical Analysis of Price Action
If the total Bids are higher than the total offers then it simply means that there’s more selling pressure in the market. Now, as a trader, you would know that if there is enormous selling pressure, and prices are still going up… what’s coming around the corner? A massive reversal. So…use your limit orders and trade wiser with our Level 2 Depth of Market data.
Volume Spread Analysis
VSA is an incredibly powerful way of making entry/exit decisions in a trade. VSA is a very profound concept in trading and every trader should make the effort to at least try to understand what it means and how it works.
Regardless of how skilled you are at observing chart patterns, one pattern everyone can spot from a distance is that prices in the market never always move up or move down. There are peaks and troughs… there are mountains and valleys, there are heads and shoulders. What do you think causes this? Monetary policy? Mr. Draghi’s speech, Ms. Yellen’s continued indecision about interest rate hikes or President Elect Trump’s lack of clarity about what his monetary policy will look like?
Of course, these economic events have a role to play in price action but what if we were to tell you that price action is a per-determined phenomena, controlled by the Tier 1 banks that are responsible for the vast volume of trading that goes on every day. Shocked? Well… read on and you will understand what smart money is.
Smart money is buying when you’re selling. They are pushing prices down to a point where they want it to be before they start selling. Because when they sell, you buy. Confused? It’s ok. It took us a long time to figure this out too…In order to help traders understand Smart Money, we’ve put together blog post that provides valuable information on how to use Smart Money to trade WITH the banks and not get caught on the other side of their trades.
Getting access to our Depth of Market feed is easy. You don’t need to have a trading account to be able to use our Depth of Market solution. Simply subscribe to our monthly plan and within 24-48 hours, we will send you the FIX API credentials that you can use for getting market quotes and Depth of Market data directly from our Liquidity Pool.
You can either choose our NY4 or LD5 venues that are both equipped with state-of-the are infrastructure housed in the Equinix data center for ultra low latency connection to our DoM feed.
The Depth of Market feed currently supports 50+ Forex symbols, 15 indices, Precious Metals and Oil/Gas instruments.
Our Depth of Market feed is delivered via FIX protocol (FIX 4.4). You will need a FIX API compliant platform or connector (typically written in C++, C# or JAVA) to be able to connect and read the depth of market feed from us.
If your intention is to use the Depth of Market feed solely as a Fast Feed for Latency Arbitrage purposes then you just use the Bid and Ask from the Top of the Book (which is the default quotes shown when you open a market session). The Top of the Book always shows the best Bid and Ask prices across our liquidity pool and with partnerships with all the major Tier 1 banks, our Top of the Book is most likely THE Top of the Book at any given time.