Undersatanding trading platform rank II?

Can someone explain to me some things about level II...... I understand what everything is resembling bid size , ask , etc etc but I dont understand 1) who determines how the prices fluctuate...I know it is supply and demand but that is too shifty.....what is the EXACT mechanism that induces a change in the price by 1 little pooint...eg 50.1 to 50.2........surely you cant enjoy people shouting 50.1 50.2 do I hear 50.3 ....? no , BANG sold to 50.2 ...NEXT......? How does the price really change?? Is it prone to complete manipulation?? 2) how can one use Level II to make a right move?? anyone know of a book that explains it IN DETAIL result in I cant find anything on the net. OK, then thanks for the replies. I see how the prices switch BUT I dont understand what decides if the next price will be 50.1 or 50.3 and why not 70 or 170??

what is a better position surrounded by...

If I put surrounded by a limit order to buy at 50.20 then 50.20 will show on the bid side by my broker's ID. If somebody puts contained by a limit order to sell at 50.40, later that will show as 50.40 on the ask side. If somebody puts in a market order to provide and my price is the highest bid, they will get filled and my bid will disappear from rank II. If someone puts in a limit order to buy at 50.40, it will be matched to the 50.40 ask and be occupied and the 50.40 will disappear from the level II screen. There is no manipulation because everybody can see everybody else's bids and asks.

I own a factory within Ecuador....

Supply and demand are single a part of what determines price. There are also market makers / trading specialists that provide movement and save things flowing. In Level II you do not see all the shares available, you only see the first lot, so, it is possible for a dishonest MM to pull a hurriedly one, but this is no where near as likely as 10 or 15 years ago. A lot of ancestors got in some serious trouble and it cost some serious damage to some reputations. With the introduction and move toward electronic instruct, the role of the market maker has be greatly reduced. Level II and direct order entry has a considerable learning curve, but your trade decision should not be based on that. It really only lets you enjoy a general idea of what is in the hopper and what direction the stock is going at the time. I honestly don't know of any books that are worth much if anything at adjectives on level II. The best way to learn is own someone who knows what they are doing to teach you, or learn by experience and loss. In the winding up, they cost about the same before you receive the hang of it. Around 20k usually.




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