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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: dave carroll who wrote (7391)	5/31/1999 10:15:00 PM
From: Mark Davis	Respond to of 12617

Ok, I'll bite. Been watching level II for a long time, and frankly, the notion that a drop on the bid of a point or more in 2 seconds coming as a shock, or unpredictably, doesn't hold up. If you were trading one of those inuts, where there's one or two bids, usually an ECN, and then you fall off a cliff, well that's hardly unpredictable. 'Normal' stocks have much more liquidity at each level, and can certainly fall fast, but not that fast. If you only have a handfull of bids (or just one) at each level, then risk is certainly higher. None of this come out of the blue, it's there for all to see.