RE:RE:RE:RE:Level 2s looking very light on the asks Iseneschal wrote:
Neoneil......... try re-reading my post and just let it sink in for more than a secong before you post..... the topic was "market depth and Level 2"............... NOT Neo Performance on the Venture Exchange.
Sheeeesh !!!!!!!!!!!!!!
My bad… when I say “NEO U” that is a Bitcoin company... sorry!
When a commodity trading on multiple exchanges they trade at the same price. However any substantial price differential for a commodity traded in multiple markets can creates an arbitrage opportunity, and yes there are many traders whose job it is exactly to find and use such opportunities. Their activity in turn has the effect of reducing the price differentials to the point where transaction costs make them unprofitable.
In saying that with high-frequency traders around, the time for a price differential to disappear is nowadays measured in milliseconds.
So what I’m saying is regarding your first post what you are seeing on one exchange is reflected on all exchanges for the same commodity with a millisecond potential defiance. I myself follow 4 exchanges with level II and very rarely see a diffential.
cheers
n