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A thread on full order books to help everyone who is confused understand a bit more and to explain how showing full market depth can prevent last night happening again.
#footballindex
#footballindex
1) Order books should operate similar to the Betfair Exchange model. Ive taken a screenshot from there and edited it to relate to how it may look on @FootballIndex
2) Last night we had a crash because we saw people undercutting each other in fear and it gave a false price of a player. Full order books will let you see the depth of the market.
3) The best example here is if you look at the Buy Price of £4.82 for Timo Werner. You can see that there are 183 shares available at this price. After this there are 76 shares available at £4.85 but the main point here is that once these are hoovered up the price jumps to £5.03.
4) Last night we could not see this and for all we knew when Sancho dropped from £15 to £9 , we could have well assumed there were 1000& #39;s on the market at this price when in reality it could have been 500 and we would have seen it& #39;s very few , they get hoovered , price goes back.
5) What happened last night is as we couldnt see this , more and more and more shares kept getting added whereas if at the start we saw it was only say 500 dropping the price by £1, no one would have reacted as we did as it wouldnt have lasted long at that price.
6) In addition with full market depth sell orders we can see how many shares are available to be sold. In the picture you can sell up to 258 shares at £4.78 then 235 are available at £4.75. This is also helpful so as you can see the demand for the player.
7) If the price points are quite spread out such as £4.78 dropping to £4.38 then dropping to £4.20 , you know demand is very low , whereas if hundreds/thousands are being bid for at £4.78 then £4.77 then £4.76 , you know demand is very high!
8) Hope this helps somewhat. Main point here is the lack of not being able to see caused the panic last night and the sooner we get market depth available the better.
@FiGuide feel free to use this if it helps others understand
