Author Topic: Can someone explain bid/ask pricing (ETF)  (Read 18904 times)

FI40

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Re: Can someone explain bid/ask pricing (ETF)
« Reply #50 on: August 14, 2015, 07:51:32 AM »

Also, with my broker (BMO Investorline) I get level 2 quotes which allows me to see not only the number of lots (hundreds of shares) at the bid and ask, but all the other standing orders at other prices too. For thinly traded stuff, or for a really big order, you can see how far "deep" into the orders you need to go to get filled. It takes away some of the guesswork and I recommend getting this access if you can get them to give it to you for free (I think my broker has an asset minimum requirement for it).

I also do my trading through BMO Investorline.  Just hoping you can help me understand...
Here's the info I'm given:


ZCN(BMO S&P/TSX CAPPED COMP INDEX)   Real-time

$19.63            Bid: $19.63      Ask: $19.64
(up)0.02         Bid Lots: 17     Ask Lots: 10
                   High: $19.77    Low: $19.63
Last trade:      Vol:54,085       Tick:   -
13:17 ET


So, my questions:

When you say level 2 quote - is that the same as what I'm seeing or is there more info I could be requesting from them?

I understand the price, trend, bid, and ask... I think High, Low, and last trade are all pretty self explanatory as well...

Am I correct that Bid Lots are the number of units (in hundreds of shares?) that have been requested at that price?  And similar for Ask Lots being number of units offered at that price?

Is the Volume the number of shares or the number of Lots traded this day?

What's the Tick?

Sorry for the long list... any help understanding this is appreciated!

Nope, level 2 quote looks different than that. Easiest way to explain is just to show you - see attached, I just grabbed that.

Bid/ask lots are in hundreds of shares, yes. The level 2 quote just gives you more information about the other bids and asks. Volume is usually number of shares traded...I think they would follow that convention in IL.

Usually the tick is the minimum increment, so 1c in many cases. But in this case they are using the other definition of it which is a plus if the last trade was up, and a minus if the last trade was down. Not relevant at all except I guess for a day trader.

RidinTheAsama

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Re: Can someone explain bid/ask pricing (ETF)
« Reply #51 on: August 14, 2015, 12:09:22 PM »
Thanks!
I'll be asking them to provide me with Level 2 quotes shortly.  That's some interesting extra info to have.