“Ping Order” definition :
A ping order is a buy or sell order for a small volume of a financial asset, such as a stock, bond, or other security. The unique characteristic of this order lies in its typically small size, meaning it has minimal impact on the market price.
The primary purpose of a ping order is to assess market liquidity and detect the presence of other orders or market participants.
1. Small Size
A ping order is typically small, in the range of a few shares or contracts, to minimize its market impact.
2. Repeated Placement
Traders or algorithms may place multiple ping orders at regular intervals on a given financial instrument, for instance, every few seconds.
3. Observing Market Response
As these ping orders are executed, the trader or algorithm observes how the market reacts. If other orders are triggered in response to the ping orders, it may indicate the presence of liquidity or market participants at specific price levels.
“High Presence” definition :
High presence trading, also known as volume trading or aggressive trading, is a strategy where an investor or entity purchases a significant amount of a financial asset within a single trading day. The substantial volume of these transactions can noticeably influence the asset’s market demand and price.
1. Market Impact
When a market participant becomes a major contributor to the total buying volume of an asset, it can have a substantial impact on the market. This can lead to an increase in the asset’s price, especially if supply is limited, potentially attracting other investors to buy as well.
2. Demand Influence
Such a high presence in the market can create the illusion of strong demand for the asset, enticing other investors to follow the trend by also buying, believing that there is growing interest in the asset. This can further drive up the price and reinforce the perception of high demand.
