Order Book Trading: DOM, Level 2, Time & Sales (2022)

This image shows a screenshot of DAX-Future order book with the ten best bids & asks.

In this article I’d like to take a closer look at the terms “DOM,” “Level 2” and “Time & Sales.” I’d also like to describe order book trading. The most common order types All buy and sell orders are collected and matched in the order book. In this way, market price is continually established.  Order …

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How many CFD Traders are in Germany? (2022)

I read an interesting article today (Aug. 19, 2015) in the FAZ about how many CFD traders there were in Germany. Here is a brief summary of the numbers mentioned: There are 47,000 active traders in Germany. Eighty-three percent think about investments (trading) on a daily basis. That compares to around 10 percent for the …

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COT: Understanding Data and Reports as a Trader (2022)

This image shows an extended cot-report with cot data for wheat (Chicago Board of Trade).

In this article you’ll learn all you need to know about the COT report and the COT data contained therein. COT data are regularly published by the Commodity Futures Trading Commission (CFTC) in its Commitments of Traders (COT) report. The COT report is available on the CFTC’s website. The COT data provide insight into the …

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Arbitrage: How to take Advantage of Price Differences? (2022)

This image shows a arbitrage sign.

I’ve worked for various trading companies and would like to share my experiences with arbitrage in this article. As suggested by the headline, classical arbitrage involves taking advantage of price and interest rate differences in trading. What are the different types of arbitrage? We can classify arbitrage based on asset class, strategy and markets (spot …

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Securities Examinations and Licenses in the United States

In this article, I’d like to provide an overview of the most common financial securities examinations needed to work as a licensed securities professional in the United States. Series 3 The Series 3 is one of the best-known examinations. Successful completion entitles you to sell commodity futures as well as options on commodity futures. The …

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Market Profile (2022) – The Fingerprint of the Market

Time, price and volume are the three factors governing price formation in markets. The Market Profile is a graphic that links them. Development of the Market Profile The Market Profile was developed by Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT), in the 1980s. Steidlmayer was looking for a way to gain …

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Using Pivot Points in Trading (with Examples / 2022)

A pivot point is a mathematically calculated point on a chart that often serves as support or resistance. It represents a potential turning point in the market or can be used as an indicator of market movements. Pivot point basics With the help of pivot points, you can easily and consistently calculate support and resistance …

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Using Time & Sales Successfully in Trading (Update 2022)

Time & Sales, which shows the time and price of every executed trade, is an important analytical tool for trading. Occasionally you may have questions about your order executions and want to check the conditions under which trades were transacted. With my broker (Interactive Brokers), it’s very easy to track and check the trades in …

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What is Slippage in Trading? (2022)

Slippage in Trading

The term slippage (from the verb “to slip”) refers to the difference between the expected price of a buy or sell order and the actual execution price. This article describes my experience with slippage in trading. Slippage occurs in fast or illiquid markets There are three trading situations in which you may experience price deviations …

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Understanding and Using the Bid Price in Trading (2022) 

Bid Price in Trading

In this article, I’d like to explain the bid price, or bid, which plays an important role in trading. The opposite of the bid is the ask price. The bid is the highest price at which someone is willing to buy a security in the market. By contrast, the ask is the lowest price at …

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Understanding and Using the Ask Price in Trading (2022)

Ask price in Trading

In this article, I’d like to explain the ask price, or ask, which plays an important role in trading. The opposite of the ask is the bid price. The ask is the lowest price at which someone is willing to sell a security in the market. By contrast, the bid is the highest price at …

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