NexusFi: Find Your Edge


Home Menu

 





basic questions about futures


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one Quick Summary with 1 posts (0 thanks)
    2. looks_two Pa Dax with 1 posts (1 thanks)
    3. looks_3 matthew28 with 1 posts (3 thanks)
    4. looks_4 userbseww with 1 posts (1 thanks)
    1. trending_up 1,079 views
    2. thumb_up 5 thanks given
    3. group 2 followers
    1. forum 3 posts
    2. attach_file 3 attachments




 
Search this Thread
  #1 (permalink)
userbseww
Cincinatti, Ohio
 
Posts: 1 since Oct 2018
Thanks Given: 1
Thanks Received: 1

what do the numbers in the depth book represent? is it true that it's quoted in 00s? so if i see "27" on the ask that actually means there are 2700 contracts being offered, not just 27?
if so, what does it look like if there are less than 100 contracts on a certain price in the depth book?

Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Seeking Insights on Day Trading Options on Futures
Options
DOM in QTrader vs Bookmap
Platforms and Indicators
Anyone Trading Equities using NT8?
NinjaTrader
Cycle Through Ninjatrader Open Windows
NinjaTrader
NinjaTrader indicator for last bar percentages
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Big Mike in Ecuador
11 thanks
Just another trading journal: PA, Wyckoff & Trends
8 thanks
Want your NinjaTrader indicator created, free?
3 thanks
Knowledge Nuggets from the Web
2 thanks
Gradient Divergence Trading
2 thanks
  #3 (permalink)
 
Pa Dax's Avatar
 Pa Dax 
Netherlands
Legendary Price Action Scientist
 
Experience: Advanced
Platform: NinjaTrader, IB TWS
Broker: InteractiveBrokers, CQG
Trading: ES
Posts: 1,239 since Oct 2017
Thanks Given: 2,028
Thanks Received: 6,333



userbseww View Post
what do the numbers in the depth book represent? is it true that it's quoted in 00s? so if i see "27" on the ask that actually means there are 2700 contracts being offered, not just 27?
if so, what does it look like if there are less than 100 contracts on a certain price in the depth book?

27 is just 27 - no multipliers or whatever.

Sent using the NexusFi mobile app

Visit my NexusFi Trade Journal Reply With Quote
Thanked by:
  #4 (permalink)
 
matthew28's Avatar
 matthew28 
United Kingdom
Elite_Member
 
Experience: Intermediate
Platform: Bookmap DOM Pro
Broker: Stage 5, CQG Continuum
Trading: US Equity Index Futures
Posts: 1,250 since Sep 2013
Thanks Given: 3,508
Thanks Received: 2,532


userbseww View Post
what do the numbers in the depth book represent?

As Pa Dax said. What you see is what you get.
Different instruments though trade different amounts of volume, some are 'thick' instruments where a lot of volume trades and the order book is heavy and they have a low range and move slowly. Others are 'thin' instruments and the order book is light and they tend to have a much larger range and move faster. People prefer different products depending on their trading style, risk profile, time available to trade etc.

Below are three example from thick to thin:

Thick: ZN - Ten year treasury note (ZNM8)


Medium: ES - The futures equity index related to the S&P500 stock index (ESZ8)


Thin: NQ - The futures equity index related to the Nasdaq 100stock index (NQZ8)


The orange total figures show the huge variation in the sum of the ten levels shown in the order book. These are Depths of Market (DOMs) from the Jigsaw trading company so in the middle columns they show the volume that traded against the orders sat at each level. You can see that the thick products trade much more volume at each level than the thin products which trade fewer contracts at the levels resulting in price sweeping through levels faster and further.

You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
Reply With Quote
Thanked by:




Last Updated on October 27, 2018


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Sitemap - Downloads - Top
no new posts