Can there be more Bid than Ask in a tick? - page 9
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the important thing is that there is a bid and there is an ask, how do you make a TIC out of them?
But there is also a Bid and an Ask . How are they formed there?
Let's go down to the level of an ordinary market maker (a bank or a large brokerage company, it doesn't matter).
We know for sure that market maker sees all separate requests from each client, we also know that market maker can combine these requests into a summary table (let's call it "market maker").
Let's assume that the market maker has two main objectives: 1. to make money; 2. to balance supply and demand.
Suppose that the market maker (RC/Bank/Exchange employee, etc.) may have its own "depository" (not visible to the trader's end), we will consider it to be a consolidated position.
Assume that trade imbalances are taken to a higher level.
Let's take as the basis that all operations from the market are executed at the expense of limits and operations of the opposite side (for convenience and simplicity we will consider that at the expense of limits).
If we take all that into account and based on basic market laws (the law of "supply and demand" etc.) we can easily assume what will happen to the price and how the Bid and Ask will be formed under different conditions.
PS
If you want to guess that there is no "depositary" and positions are not taken to the market, but you do not want to take into account the obvious "kitchen" (casino)...
For 8 pages it was not clear what you mean by a tick. Just don't link to the wiki. Just go on, "I, Academic, believe that a tick is...
Do you know what a tick is? Give me a definition. I've already given mine. Moreover, it is strange to hear the question what I consider a tic, even to say just a little ridiculous - a tic is something that people invented, and one should not count, but know what it is. What I consider a tick I have already said, what you consider a tick you have also said, but for some reason you don't disclose it more fully. What's the problem - just tell me what you think a tic is. You understand the problem - if it is just a timing - then it has to be at a certain interval, i.e. in each tick the time has to be DIFFERENT. If it is a price change, then the prices must necessarily be different. :) You stick to the second option, yes it resembles the true one more than the first. :)
But let us already define - what is a tick? It is not just some bullshit which is sent by DT. :) When he wants it and it's there. :) A tick is a strictly defined thing. So, you have to define it clearly, not evade an answer like you do. So what is a tick according to you? We can even discard that definition of yours - "A tick is a change of the best price". Whatever you call it - no one clings to the words, but explain the point.
Let's go down to the level of the average market maker (bank or large DC doesn't matter).
Do you know what a tick is? Give me a definition. I've already given mine. Moreover, it is strange to hear the question what I consider a tic, even to say just a little ridiculous - a tic is something that people invented, and one should not count, but know what it is. What I consider a tick I have already said, what you consider a tick you have also said, but for some reason you don't disclose it more fully. What's the problem - just tell me what you think a tic is. You understand the problem - if it is just a timing - then it has to be at a certain interval, i.e. in each tick the time has to be DIFFERENT. If it is a price change, then the prices must necessarily be different. :) You stick to the second option, yes it resembles the true one more than the first. :)
But let us already define - what is a tick? It is not just some bullshit which is sent by DT. :) When he wants it and it's there. :) A tick is a strictly defined thing. So, you have to define it clearly, not evade an answer like you do. So what is a tick according to you? We can even discard that definition of yours - "A tick is a change of the best price". Whatever you call it - no one is clinging to the words, but explain the point.
Just go on - "I, Academic, believe that a tic is...
Nope. :) I've already told you what I think. You wrote NO, it's not so. I don't want to say it again :) .
You wrote
1-Thick is exactly the moment of satisfaction of the two parties.
2-The definition is
Tick is the minimum fluctuation in the exchange rate set by the exchange rules. In the US, the price step is 1/16, 1/32 or 1/64 US dollars.
3-Ticker tape machine is a machine for sending current share quotations by telegraph or telex.
4- But so far I have wondered what a TIC is? May be the problem of misunderstanding? What is TIC?
I have no idea what your definition is at this point.
And without linking the conversation to a specific software, you probably can't do without it either.
It's a pity that a constructive dialogue didn't work out and I don't want it anymore.
You wrote
1-Thick is exactly the point of satisfying the two sides
2 - Another definition
Tick - the minimum rate fluctuation at an exchange, set by exchange rules. In the USA, the price step is 1/16, 1/32 or 1/64 dollars.
3-Ticker tape machine is a machine for transmitting current stock quotes by telegraph or telex.
4- But so far I have wondered what TIC is? Maybe the problem is that there is a misunderstanding of it? What is TIK?
I have no idea what your definition is at this point.
And without linking the conversation to a specific software, you probably can't do without it either.
Too bad a constructive dialogue didn't work and we don't want to
But there is also a Bid and Ask in ECN . How are they formed there? I would add a little more thought - who cares how they are formed in fact, what is important is that there is a bid and there is an ask, how do you get TIC from them?
1. About ticks
As far as I understand "tick" is quite an abstract notion and there is no endless debates without reference to a particular trading system (to a particular terminal).
What information is included into the structure describing a tick in MT5 has been already mentioned here.
The precise description of what is a "tick" in general terms and what makes it be formed, I haven't seen here or found on the web (I'm afraid I won't find it either).
Also, I have not yet seen a clear confirmation that a "new tick" should be formed only when changes in ask and bid, and it should be obligatory change in price.
2. Regarding the formation of ask and bid (I do not claim the truth, especially since it is not my opinion)
The primary bid and ask will appear at the very bank which is a participant in direct foreign exchange market trading. The spread is formed just at the expense of the brokers working through this bank. Actually, brokers form bid/ask, which they get from their bank, due to the fact that executing clients' orders (or trading themselves) they inevitably cause skewness of traded instrument towards demand or supply. The bank offsets the balance by buying or selling currencies by making bids to other market participants. At this stage, the spread is still very small and is not always expressed in the whole value of the basic point of the currency instrument. Thus, we are getting to the fact that quotes received (and not even transmitted yet) by the broker depend not only on the current market situation, but also on the brokers themselves, working through this bank, as well as on the bank's own operations. It is not a secret, that being a decentralized market, the market is subject to a certain inertia. For example, if a large transaction occurred in Tokyo and an excessive demand caused a sharp jump in the rate, it will take some time before other market participants compensate the movement to the next weighted average rate. It is also possible that exchange rates in Tokyo may be one way in a few minutes and another way in London, which is not within the standard range, but very different from the current market sentiment.
So, your broker has received quotes from his bank. In order to ensure stability and to insure against non-market quotes being transmitted to clients (which occurs when a bank runs its own game driven by its own needs), brokers try to have more than one quote provider, even if they only work through one bank. As you can guess from the above, the total stream of quotes from your broker will end up with a very serious spread, and then it is time to filter, during which the broker generates the bid/ask quotes directly provided to you. As a result, indicative quotes will be formed, on which in turn the spread will be imposed, which is necessary for the broker to receive income from your transactions.
2.Regarding the formation of bids and offers (I do not claim to be right, especially as my opinion is not)
http://www.fxequity.ru/priroda-bid-i-ask/