Investment traders who work for large financial firms such as JP Morgan and Goldman Sachs have access to market price data streams that are far advanced in timing and depth of information. These firms pay a significant amount of money to receive this data and expect their traders to generate millions in profits. Individual day traders have not had access to the same levels of information. NASDAQ Totalview provides advanced market pricing data at prices small businesses and individual traders can afford.
Day-traders in the stock market can move in and out of stock positions several times a day. They close out their positions by the end of the trading day. Profits are made when the stock they hold moves just a few cents in the correct direction. A profitable day-trader needs more information than just the current bid and ask price of a stock.
The day-trader who can see all of the orders in the system for a particular stock has a better understanding of which direction the price will move. Orders to buy and sell are placed by brokers of retail investors, institutional investors, market makers and computerized order placement systems called electronic communications networks or ECN. The price levels and size of the orders can be used to project a price change direction.
The Next Level
Traders who used this type of data purchased access to what is called Level II pricing. Level II gives the trader access to the depth of orders away from the bid and ask prices and who is actually buying and selling the stock. NASDAQ Totalview takes Level II pricing and adds additional data. It provides access to the order further away from the current pricing, the depth of liquidity at various prices. The Totalview data is best for determining order imbalance before, during and after market hours.
NASDAQ Totalview provides the deepest level of information to help forecast near term stock price movement. The day-trader who knows how the orders are distributed can determine which direction the stock price will move. Totalview is unique in its providing of order imbalance for market opening and closing.
NASDAQ Totalview is a tool that can help day-traders profit from short-term stock price movements. This information is not free to the public. The companies that provide in-depth stock quoting and charting services are charging about $20 per month on top of their regular charges to have NASDAQ Totalview. Online stock broker E-Trade offers the service at no charge to their "Power E-Trade Pro" customers--traders who make more than 10 stock trades per month.
Tim Plaehn has been writing financial, investment and trading articles and blogs since 2007. His work has appeared online at Seeking Alpha, Marketwatch.com and various other websites. Plaehn has a bachelor's degree in mathematics from the U.S. Air Force Academy.