Ax

Dictionary Says

Definition of 'Ax'

The market maker who is most central to the price action of a specific security. The ax can be identified by spending several days studying level II quotes and noting which market maker seems to have the greatest effect on the security's price.
Investopedia Says

Investopedia explains 'Ax'

Identifying the ax is a common strategy among day traders, and trading in the same direction as this market maker can drastically increase a trader's odds of making successful trades. Any given stock can have several market makers, and the ax for any given security can change every day. It may take a trader several days to determine which market maker is primarily controlling the action of a certain stock.

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Articles Of Interest

  1. Introduction To Level II Quotes

    Find out what's happening in a given stock with this service showing Nasdaq market makers' best bid and ask prices.
  2. Electronic Trading Tutorial

    Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
  3. The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way they operate and the securities that trade on them.
  4. What's the difference between a Nasdaq market maker and a NYSE specialist?

  5. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  6. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  7. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  8. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  9. Triple Screen Trading System - Part 1

    Learn to take advantage of both trend-following and oscillator techniques to analyze your trading decisions.
  10. Triangles: A Short Study In Continuation Patterns

    Learn how to read these formations of horizontal trading patterns.

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