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Strategies & Market Trends : DAYTRADING Fundamentals
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To: LPS5 who wrote (4636)10/4/1999 11:25:00 AM
From: Matthew L. Jones  Read Replies (1) of 18137
 
LP:

The Level 3 that I am aware of IS what is often referred to as "the instinet book". I've personally seen screen shots of it. It is, however, not available to "non-professionals" (that is what the industry calls us). Recently, I have heard, a non-professional can purchase a "dead terminal" which shows bids and offers on level 3 but does not allow order entry. I was told by a MM at the PSE that this dead terminal costs $200 per month.

I am unaware how one goes about getting this dead terminal, but the source of this information is very reliable. I attended a session at the recent Expo where this particular MM explained the whole thing in a great deal of detail. He showed actual screen shots of the terminal and explained why Level 2 is not the security blanket that many firms tout it as. He stated point blank that he would not consider trading his personal account without seeing the "whole picture". The level 3 screen shows significantly more information than level 2 and shows the "real" size and depth of the market. Level 2 does not-- in fact with the proliferation of day trading and level 2, this MM stated that level 2 was often used to "falsely advertise" the MM's true intentions.

I hope this clarifies the debate somewhat.

Matt
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