![]() DMA enables you to participate directly with the market - entering your own buy and sell orders (i.e. Learning how the order book and auction process works will give you the necessary skills for Direct Market Access (DMA) - available from certain brokers. We recommend "The UK Trader's Bible" by Dominic Connolly. Your broker may allow you to trade during this period.įor short-term traders, there are a host of trading strategies that go with Level 2 access. This can be a great time to trade at or near the day's high or low. ![]() You'll also be able to track price action during the opening and closing auctions. Even for longer term investors, Level 2 can help you make significant savings.įor less liquid stocks, level 2 allows traders to see which market makers are showing the most interest in a security, to identify the patterns for each market maker, and to see how liquid a stock is at any point in time. ![]() With practice, you'll learn how to improve the timing (profitability) of your own trades. By watching the prices and volumes of shares available on the bid/offer (market depth), by seeing how some market participants try to manipulate the order book, you can gain an insight into the price formation process.Īs you watch buy and sell orders being filled, and new orders being added, you can see the pressures on the bid and offer and where order volume is creating support and resistance.
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