Start A Conversation
Click here to Chat with me!
Search our Website now
TRND Trading
How to use hidden order blocks to increase your likelihood of getting the price you want.
TRND Trading
Fundamentals
The order book contains the available Buy (Bid) and Sell (Ask) orders at price levels. We basically see at what price buyers are willing to buy and to what price sellers are willing to sell. The gap between the Bid and Ask is called spread. These orders are seen by all market players!
Sell Orders
Let assume that 10 000 shares are a relatively large order in this case.
Let’s say that I bought 10 000 shares at $40.00 and had a 10-14 % target. (Around $46-48). How do I increase my likelihood of getting these 10 000 shares sold at my target?
If I would have used regular visible orders the order book would have looked quite “heavy” around $46 and other market players would have seen that there is a big seller in the market. A big seller in the market is not a good sign and other players may want to get their positions sold as well.
These other sellers may be willing to sell at a cheaper price (let say $45) just to be certain that they get their positions sold. Hence a domino effect is started where sellers “take” the Bid side at lower prices just to secure their profit. The price falls!
My large order will not be sold at all!
What should I do?
Sell Orders
Hidden orders are incredibly useful
Now, since I’m trading with large positions my broker will let me place hidden orders at any price level, and no other market player will be able to see it. This function is a must-have for large players otherwise there is no chance of getting in or out of positions.
It basically lets me choose how many shares I want to be displayed at different market levels. In this example, I do not want to “look like” a big seller at a price of $46 so I only put 1000 shares visible in the book and put the rest 9000 shares as hidden. The order book will now look “light” and other market players will not recognize me as a big seller. Hence I have increased my likelihood of getting my large position sold between $46 – $48.
Buy Orders
Let’s say that that I want to buy 10 000 shares at $40.00. How do I increase my likelihood of getting these 10 000 shares filled at the price of $40?
If I would have used regular visible orders the order book would have looked quite “heavy” around $40 and other market players would have seen that there is a big buyer in the market. A big buyer in the market is a good sign and other players may want to get into buy positions as well. This big buy order indicating that there is buying pressure and no one wants to miss the move.
These other buyers may be willing to buy at a higher price (let say $42) just to be certain that they get into the trade. Hence a domino effect is started where buyers “take” the Ask side at higher prices just to secure make sure they got in. The price rise!
My large order will not get filled!
What should I do?
Buy Orders
Hidden orders are incredibly useful
Now, since I’m trading with large positions my broker will let me place hidden orders at any price level, and no other market player will be able to see it. This function is a must-have for large players otherwise there is no chance of getting in or out of positions.
It basically lets me choose how many shares I want to be displayed at different market levels. In this example, I do not want to “look like” a big buyer at a price of $40 so I only put 1000 shares visible in the book and put the rest 9000 shares as hidden. The order book will now look “light” and other market players will not recognize me as a big buyer. Hence I have increased my likelihood of getting my large position filled around $40.
We help your Wealth to grow by supporting your Trading or Investing.
Click "Allow" in the permission dialog. It usually appears under the address bar in the upper left side of the window. We respect your privacy.
It seems your microphone is disabled in the browser settings. Please go to your browser settings and enable access to your microphone.
00:00
Are you sure you want to start a new recording? Your current recording will be deleted.
Error occurred during uploading your audio. Please click the Retry button to try again.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.
Keeping this cookie enabled helps us to improve our website.
Please enable Strictly Necessary Cookies first so that we can save your preferences!