Order Books



  • I keep reading on different threads about "Order Books" - without some wag taking the p... what are they? Might help a number of newbies.



  • Thank you i wanted too ask this myself



  • @Gary-T it's a buying and selling mechanism.

    So imagine player a is £1, the instant sell price is 60p.

    The order book system would allow a current holder to put in a sales order of 80p to be met by the market, this ensures that the seller gets better than is price and the buyer gets better than current buy price.

    As a non holder, you should also be able to put in a buy order at 80p and wait for a holder to say, you know what, I'll sell my shares at that price and has the same effect.

    Hope this helps



  • @Ddr To expand on your clear explanation order book implementation will also be the best way for FI to solve the large spreads problem. Users who want out can list at say 80% of the buy price (rather than the 60% offered by IS) and that then keeps the money in the platform.



  • @Ddr Seriously just trying to get my head around it - as we already have selling orders that will give you a top price when you sell what is the reason for it? the only benefit I can see is for the buyer - am I reading that right? and FI of course.
    @Millonarios You are welcome - the only daft question is the one that is not asked



  • @Gary-T said in Order Books:

    @Ddr Seriously just trying to get my head around it - as we already have selling orders that will give you a top price when you sell what is the reason for it? the only benefit I can see is for the buyer - am I reading that right?

    To an extent yes, but consider that player a is now off trend or dipping after a peak, or even if you think theres a sell queue 20p deep at market price and no one is buying at market price as its obvious he will drop further, it allows you to exit the player without taking the full is hit



  • @Ddr Thank you kind sir - that helps my understanding now



  • @DW said in Order Books:

    @Ddr To expand on your clear explanation order book implementation will also be the best way for FI to solve the large spreads problem. Users who want out can list at say 80% of the buy price (rather than the 60% offered by IS) and that then keeps the money in the platform.

    Yeah the other side effect is that more cash stays in fi's coffers as rather than them having to buy the shares back at is price, the market should adapt and step in to prevent people accepting the spread



  • They would be very useful for both buyers & sellers right now.



  • @Gary-T said in Order Books:

    @Ddr Thank you kind sir - that helps my understanding now

    It's quite difficult to get your head around but there are a few decent videos on youtube that I found helped increase my understanding.

    One thing is for certain, those with experience of order books from other platforms, will have the knowledge and potential to exploit the uninformed.

    Get reading as much as you can about the subject before they are introduced. 👍



  • @Gary-T said in Order Books:

    @Ddr Thank you kind sir - that helps my understanding now

    No problem, this is only my understanding of them and I've never traded before so maybe someone who has could offer more insight as I'm sure there are probably more nuances and vagaries to it.

    I would expect some sort of briefing from fi before they're introduced so dont start to worry about it yet



  • @Gary-T I did a thread explaining them a few months back - have a read

    https://forums.footballindex.co.uk/topic/14198/order-books-oracle



  • @Ericali Cheers for that - Have you got off the PP train yet you must have made 150 in the last hour ha ha



  • @Ericali said in Order Books:

    @Gary-T I did a thread explaining them a few months back - have a read

    https://forums.footballindex.co.uk/topic/14198/order-books-oracle

    Something else, what happens to the players price when orders are placed......if it's a sell order then it's the same as just putting it in the sell queue. But if it's a buy order will that potentially push the price up before its met?



  • I never new you could buy shares from a order book, never seen anyway of doing this. I’ve only ever been able to use the order book to sell at a better price ?



  • @Gary-T said in Order Books:

    @Ericali Cheers for that - Have you got off the PP train yet you must have made 150 in the last hour ha ha

    No 😂 still on-board



  • @Ddr said in Order Books:

    @Ericali said in Order Books:

    @Gary-T I did a thread explaining them a few months back - have a read

    https://forums.footballindex.co.uk/topic/14198/order-books-oracle

    Something else, what happens to the players price when orders are placed......if it's a sell order then it's the same as just putting it in the sell queue. But if it's a buy order will that potentially push the price up before its met?

    If it's a sell order you just literally put the price you are willing to sell at.

    If someone's buy price is £5, but you are happy with £4.50 you put that & list how many shares (or what liquidity) there is at this price.

    Then is up to whoever if they choose to buy at £4.50 from you directly or they could put a bid of £4.35 in & it's then up to you to either lower your price of there is a stand-off unless someone else swoops in & gives you the £4.50.

    If it's a buy order & there is nothing in the sell queue. You simply pay the price of the product (£5) or don't buy it...



  • People have been talking about order books on FI for years, its not going happen.



  • @NewUser565183 I think that they will come, one of the reasons they did the deal with Nasdaq was to help get an order book system in place. They may run some kind of dual system for a while to help those of us that have never used order books before.



  • @Ericali said in Order Books:

    @Ddr said in Order Books:

    @Ericali said in Order Books:

    @Gary-T I did a thread explaining them a few months back - have a read

    https://forums.footballindex.co.uk/topic/14198/order-books-oracle

    Something else, what happens to the players price when orders are placed......if it's a sell order then it's the same as just putting it in the sell queue. But if it's a buy order will that potentially push the price up before its met?

    If it's a sell order you just literally put the price you are willing to sell at.

    If someone's buy price is £5, but you are happy with £4.50 you put that & list how many shares (or what liquidity) there is at this price.

    Then is up to whoever if they choose to buy at £4.50 from you directly or they could put a bid of £4.35 in & it's then up to you to either lower your price of there is a stand-off unless someone else swoops in & gives you the £4.50.

    If it's a buy order & there is nothing in the sell queue. You simply pay the price of the product (£5) or don't buy it...

    Cheers but not really what I was talking about.

    I'm saying if someone puts in a buy order between market and is price, does this have the potential to move the market price upwards? So in essence ig could be open to manipulation, if I have 100 shares in someone, I could put in buy orders for thousands of shares to push his price up, market sell the ones I hold once hes had a spike and then cancel the buy orders, does that make sense?

    Simply put, I think I'm trying to understand if buy and sell orders are going to have an effect on the market price


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