How come above ask and below bid prices happen, as ideally first ask/bid prices should be filled up before price moves to next levels.
In other words, when there are people willing to sell at lower prices(ask), what makes some one to buy above ask. Is this some kind of manipulation?
For example, in JP associate, today one trade happened at 56.30 when ask price exist at 56.00. It is 6 tick above ask price.
Roopa, what you need to understand is that no retail trading platform in the world can display all the trades that happen at the exchange, so it is very easily possible that someone buying a big chunk of JP at market price pushed the price to 56.3 and as soon as his buying stopped it dropped back to 56. It is also very easily possible that all of this happened within a second, and you were not able to spot it. Hope this clarifies.
Thank you Nithin for this answer and also for all your initiatives for helping retail traders.
So, all those trades would not appear in Time and Sales, though they might have happened in fraction of a second? Esignal showed this jump from 56 to 56.30 as out of sequence and NT T&S showed it as 0 trades between those prices. If this is the case, aren’t the retail traders are at great disadvantage as they will be taking decisions based on wrong data. Is there a way to insure retails traders from that kind of invisible/unprinted fast moves, as even stoploss might not help in such situations.
The data feed we get from eSignal is actually a one second or sub one second snap shot data only, not actual tick data
Roopa, it is atleast today technically possible to show all the ticks that happen on the exchange over the internet with the kind of bandwidth we all have. Unless you are doing some high frequency trading, these ticks won’t really make a difference to the retail trading community…