The following is a short extract from the course "How To Trade The Futures Market", please click here Trade Futures Course for full details on how to obtain the full text, futures trading simulator along with sample data and bonus trading ebooks package.

Find: Bid market offer dom best 5230 quantity order price orders.

First let me explain the DOM, to those of you who are not totally familiar with it. If you look at the picture (figure 42) of a DOM window, you will see it is divided into bid data on the left in blue and offers on the right in red. For each bid price there is the bid quantity and similarly for each offer price there is an offer quantity. The current best bid and offer are at the top of their respective lists. So the best bid is 5231 for 3 lots and the best offer is 1 lot at 5232 (in the trading pit when a trader bids the market he says the price then the quantity and when he offers the market he says the quantity then the price). As you move down the lists, the bids and offers represent the next best bid and offer. This particular example shows the DOM 10 levels deep. Figure 42 One of the first points to make about the DOM is that it represents limit orders that are in the market already. It does not show stop orders and it does not show the intention of traders who have not placed their orders in the market. In the example we can see that there is an order to buy 14 lots at 5230, but this order could be cancelled before the market gets to 5230, so it is not a certainty. Assuming this order does hold and the market moves down to be 5230 bid, it could be that a trader is waiting for the market to be 5230 bid to enter a market order to sell 50 lots. If we knew that we would have a different view of this 14-lot bid. When we see the 14-lot bid in the DOM we assume that it will offer some support, but if we had all the information we might view it differently. The 74

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How To Trade The Futures Market

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