OP 01 November, 2023 - 02:28 PM
(This post was last modified: 02 November, 2023 - 02:08 PM by IDaredevil. Edited 1 time in total.)
Studying data on buyer and seller interest is one of the most rational ways to decide whether to buy or sell a futures contract. The reason for this is that the data is obtained from the order book, which displays the volume of open orders to buy and sell futures contracts at all price levels.
The order book data, or order book data, reflects the liquidity of the asset. Fewer orders at a particular price indicate lower volatility, and vice versa. The data is updated in real-time and reflects trading activity in the market.
Stocks and most other instruments tend to gravitate towards the price with the highest number of orders. For example, if a stock is trading at $100, and the order book shows 100 buy orders at $110, 200 at $111, and 400 at $112, while there are 40 sell orders at $99, 60 at $98, and 150 at $97.
With this data, you can understand that the interest in buying is higher than in selling and accordingly position yourself in the market.
The order book data, or order book data, reflects the liquidity of the asset. Fewer orders at a particular price indicate lower volatility, and vice versa. The data is updated in real-time and reflects trading activity in the market.
Stocks and most other instruments tend to gravitate towards the price with the highest number of orders. For example, if a stock is trading at $100, and the order book shows 100 buy orders at $110, 200 at $111, and 400 at $112, while there are 40 sell orders at $99, 60 at $98, and 150 at $97.
With this data, you can understand that the interest in buying is higher than in selling and accordingly position yourself in the market.
