Bid - Ask - Last

[rinran 2]

Hello,

I was watching level II today and noticed that the bid/ask for AA was outside the range of the last price, can someone explain this? I've read that the last is the last price a trade occurred at, but with 13k of volume I find that hard to believe. Or am I misunderstanding what volume means too?

I'm using the DAS Trader Pro simulation with real-time data. The $150/month package.

[rinran 2]

Anyone have any ideas on this?

[JasonH 47]

If you look at the Time and Sales window, you'll see all the trades that are happening for AA. The most recent trade will be at the 'last' price shown in Montage.

There's a lot of ways to explain what you've noticed, but just to throw one possibility your way... Maybe the last trade was at 7.565 and it was the top bid at the time. Then right after several more limit orders came in above it, so the new top bid is 7.61 now. But as you've seen, orders fly in and out every second so a ton of scenarios are possible.

[Bailey Nevener 83]

If someone dropped a huge order on the bid it could have taken out levels all the way to 7.565 with that number as the last fill.  
 

This is a relatively cheap stock and I’m only seeing a couple 100 shares at each level.  The scenario I mentioned therefore would not be outlandish especially since this is a tad later in the day.  After their order got filled, the market makers could have just refilled the gap

It would have perhaps been more useful to have the T&S pulled up.  Or there might be some type of LVL 1 lag on DAS concerning the last price!  

Edited August 28, 2020 by Bailey Nevener

[Alastair 110]

IMHO try this for a stock and see if u get a better pic

1.  Add a T&S widow between chart and montague

2)  On chart, config it to show BID/ASK and remove LAST PRICE so its not too much being displayed.  1 min chart only.  This will also give u feel of spread easier IMHO.

3) When watching tape focus ur eyes on topline T&S while ur peripheral vision is on chart to left  of T&S and montague on the right.

Try i c if u get a better feel.....LAST PRICE will be in TS

 

 

 

 

[Bailey Nevener 83]

 

14 minutes ago, Alastair said:

IMHO try this for a stock and see if u get a better pic

1.  Add a T&S widow between chart and montague

2)  On chart, config it to show BID/ASK and remove LAST PRICE so its not too much being displayed.  1 min chart only.  This will also give u feel of spread easier IMHO.

3) When watching tape focus ur eyes on topline T&S while ur peripheral vision is on chart to left  of T&S and montague on the right.

Try i c if u get a better feel.....LAST PRICE will be in TS

 

 

 

 

That is exactly what I do with the chart configuration.  

Putting the Bid / Ask lines on the chart has saved me from being burned more times than I can count.