Blondie wrote: ↑Tue Feb 04, 2025 1:31 pm
I have tried to look up 'order flow' but there seems to be very little info on it.
You could talk to GPT about it.....
Describe order flow in the context of Betfair ladder trading.....
Understanding Order Flow in Betfair Ladder Trading
In Betfair ladder trading, order flow refers to the movement of money within the market—how bets are being placed, matched, or pulled at different price levels on the ladder interface. By analyzing order flow, traders aim to anticipate short-term price movements and position themselves advantageously.
Key Elements of Order Flow
1. Market Depth (Liquidity)
The ladder shows available money at each price point.
Large amounts at a price level may act as a support or resistance, while thin liquidity suggests potential for rapid movement.
2. Matched vs. Unmatched Bets
Matched bets indicate where money has been accepted, showing genuine interest at that price.
Unmatched bets reflect traders trying to enter at better prices.
3. Money Coming In and Out (Bet Queues)
Watching the rate at which money enters or disappears from the queue helps traders gauge strength or weakness in price movement.
Sudden removal of large amounts could indicate a spoof (a misleading order intended to manipulate perception).
4. Momentum and Reversals
If money is consistently being matched at shorter odds (lower prices), the price is likely to move down.
If lay bets are being matched aggressively at higher odds, the price may rise.
A stalling order flow (price hesitating despite bets being matched) can signal a possible reversal.
5. Traders vs. Punters
Order flow also helps identify trader-driven movement (quick, short-term changes) vs. genuine punter-driven betting (more gradual, sustained flow based on actual event probabilities).
How Traders Use Order Flow
Scalping: Identifying where money is being placed heavily and placing trades accordingly, aiming for a 1-2 tick profit.
Momentum Trading: Jumping in when a strong order flow suggests continued movement in one direction.
Support & Resistance Trading: Spotting key levels where large unmatched bets repeatedly hold the price.
Spoof Detection: Identifying fake liquidity meant to deceive traders into thinking the market is moving in a particular direction.
By closely observing how money moves in real-time, Betfair ladder traders can develop an edge, making better decisions based on supply, demand, and intent behind market activity.