Allison Bishop

Market Activity Overview

Now that we've fleshed out the different kinds of entities in the US equities market and the logistics of communications between them, it's time to zoom out a bit and get a sense of scale and proportions.

1
 min
Allison Bishop

Venues

There currently 3 large parent companies which each operate several stock exchanges - ICE (aka the NYSE family - five), CBOE (four), and NASDAQ (three).

1
 min
Allison Bishop

Stocks and ETFs

Currently, there are roughly 8300 distinct securities traded in the US equities market. For each security, the market capitilization is calculated by taking the number of shares outstanding and multiplying by the current price per share.

4
 min
The Real DMT

NBBO Definition

Okay Lets Go what's an NBBO?

National Best Bid and Offer tells you the highs and the lows

The price, the highest bid and also the lowest ask

To trade at these numbers is the brokerages task

1
 min
Allison Bishop

Trades and Sizes

On any given day, around 6.7 billion shares are traded in the US equities market, with approximately 34 million trades per day (concentrated into bursts of activity).

3
 min
Allison Bishop

Orders, Quotes, and Ticks

The number of orders that are transmitted to a venue is typically much higher than the number of resulting trades. For example, the number of cancellations of trades is usually 20:1!

4
 min
Allison Bishop

Market Share

The market share of a venue is calculated as the amount of trading volume that occurs on that venue on a given day, divided by the total volume across the US equities market.

2
 min
Allison Bishop

Indices

There are several indices which are commonly used as heuristic indicators of overall market health -and the behavior of these indices are frequently used in the media to paint the overall health of the market.

6
 min
Allison Bishop

Volatility and Variation

In a technical sense, "volatility" in the context of stock trading usually refers to the standard deviation or variance of prices for a particular security or set of securities.

4
 min

Coming soon...

We appreciate your interest in The Terminal. Other areas of The Terminal are currently in private alpha testing. We will soon be opening up The Terminal beta to members of our waitlist.

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