Leaders and Followers
The Liquidity Providers are split into two different classes; Leaders and Followers. A Leader is a Liquidity Provider that is the first to make a new inside Bid or Ask. A Follower moves to the new inside quote after the Leader and matches the price of the Leader.
This is the basic calculation that is done and displayed in the columns of the Liquidity Windows. It is defined by calculating the Liquidity Provider activity separately each for the Bid side and for the Ask side. The Ask side activity is then subtracted from the Bid side activity. The difference is the Net%. It is a measure of the imbalance in the forces driving the market up or down. The Net% values are calculated for the Leaders and Followers separately, and combined into Totals.
The longer term time frames are called “Sessions”. User sessions can vary from 1 to 24 hours. Each session shows the aggregated behavior of each individual Liquidity Provider for that session’s time span. The shorter term time frames vary from 1 to 30 minutes. The shorter time frames present the same type of statistics as the Sessions do, which are the Net% differences between the Liquidity Provider activity on the Bid side minus the Market Maker activity on the Ask side.
PitView™ Analytics are presented in Rolling Sessions move forward in time and look back a fixed length of time. For example, if a user selects a Rolling Session of 4 hours, from the current moment the analytics are calculated based upon the last 4 hours worth of Liquidity Provider activity. This calculation always looks back the same 4 hour time span. At 12:00 the data is calculated back to 8:00. At 12:01 it is calculated back to 8:01, and so forth, always looking back a fixed distance in time.
The real power of FX TotalView™ comes from the fact that they put everything into the proper perspective for you. You no longer have to switch things around in your mind to properly compare the Liquidity Provider activity in different pairs. Here is how PitVIew™ does it for you.
Let's use the United States Dollar (USD) as an example. Each of the traded currency pairs follows a standard naming convention where the first currency in the pair name is being compare to the second currency. The 7 standard pairs for USD are AUDUSD, EURUSD, GBPUSD, NZDUSD, USDCAD, USDCHF, and USDJPY. If USD is getting stronger against JPY, then USDJPY would be going up. However, if USD was getting stronger against EUR, then EURUSD would be going down. This has to be confusing to traders. Especially if they are used to keeping track of things with charts. In both instances USD is getting stronger, but in one instance the chart is going up, and the other instance the chart is going down.
FX TotalView™ takes the confusion out for you. To accurately compare USD to every other currency, USD must always be shown as the first counterparty. So when necessary, FX TotalView™ will create an inverted pair with the counterparties reversed from their normal order. So for USD, you would see USDAUD, USDEUR, USDGBP, USDNZD, USDCAD, USDCHF, and USDJPY displayed as normal. USDAUD*, USDEUR*, USDGBP* and USDNZD* are the inverted pairs displayed with the counterparty order reversed. Now all pairs are shown in a consistent manor relative to USD, and accurate comparisons of USD strength and weakness can now be made.
Topmost Window Type
"Topmost" is a property associated with a Window form. The typical Window form does not have this property. If you move another form over the first form, the first form is hidden. Wit ha "Topmost" form even if you move another form over it, the "Topmost" form will remain in the foreground. It is the "Topmost" property of the PitVIew™ Liquidity Windows that allow them to sit on top of and look as they are part of other trading platforms.
Total% represents how much each Liquidity Provider's activity in a currency pair compares to the total of the activity of all of the Liquidity Providers. It represents how much control that particular Liquidity Provider has in the currency pair. The sum of all Liquidity Providers activity in a currency pair always adds up to 100%. It is quite common to see one individual Liquidity Provider being in control of more than 50% of all of the currency pair's activity. Also, it is quite common to see 2 to 4 Market Makers controlling 90% or more of that currency pair. So when they are aligned in the same direction, that is a powerful indication of probable short term market direction.
The weighted percent is calculated simply by multiplying the Net% value for each Liquidity Provider by their Total% . This gives an alternative way to measure the influence of each Liquidity Provider's activity in a currency pair. As with Net% and Total%, these values are calculated for the Leaders and Followers separately, and also combined into Totals. The sum of all of the Weight% values is always equal to the value on the bottom row of FX PairView™.