{"id":7246,"date":"2025-12-09T16:20:00","date_gmt":"2025-12-09T22:20:00","guid":{"rendered":"https:\/\/librarytestdev.wpenginepowered.com\/?post_type=doc&#038;p=7246"},"modified":"2026-01-06T18:57:07","modified_gmt":"2026-01-07T00:57:07","slug":"order-book-dominance","status":"publish","type":"doc","link":"https:\/\/library-test.tradingtechnologies.com\/tt-trade-surveillance\/core-models\/trading-behaviors-models\/order-book-dominance\/","title":{"rendered":"Order Book Dominance"},"content":{"rendered":"\n<p>Order Book Dominance occurs when a single trader&#8217;s resting orders make up the majority of the disclosed volume of an\n  instrument at different times during a trading session. The Order Book Dominance model in TT Trade Surveillance analyzes and scores\n  clusters that may indicate that a single trader is dominating the total traded volume for an instrument during the\n  session.<\/p>\n\n\n<p>When a single trader&#8217;s resting orders make up the majority of the disclosed volume for an instrument, they have\n  control over the pricing of that instrument. The Order Book Dominance model can alert your firm to this behavior,\n  which may be an indication of potential market manipulation.\n<\/p><p>\n\n<\/p><p><strong>Note<\/strong>: The Order Book Dominance model only identifies potentially suspicious trading behavior. This\n  model does not necessarily reflect an actual rule violation.<\/p>\n\n<h2>Scoring methodology<\/h2>\n\n\n<p>TT Trade Surveillance computes a <a href=\"ovw-how-tt-score-works.html#cluster\">cluster<\/a> score based on trading activity that\n  has drawn regulatory attention in other situations.<\/p>\n\n<p>Higher scores indicate the trading activity within a cluster is more likely to risk regulatory concern. A company&#8217;s\n  risk monitors can use these scores to prioritize resources for investing which users&#8217; trading activity poses the most\n  regulatory risk.<\/p>\n\n\n\n<h2>Order Book Dominance score interpretation<\/h2>\n\n<p>The Order Book dominance model finds instances where the trader has more than a certain percentage of the disclosed\n  volume from the top 5 or 10 price levels for an instrument.<\/p>\n\n<p>Each cluster is assigned a risk score on a sliding scale between 0-100. This score represents the probability that\n  Order Book dominance occurred during the duration of the cluster&#8217;s trading activity.<\/p>\n\n<p>Based on TT Trade Surveillance best practices, clusters that score over 75 are deemed to be \u201chigh risk\u201d and should be the primary focus of users during their compliance reviews.<\/p>\n\n\n\n\n<h2>Order Book Dominance scorecard metrics<\/h2>\n\n\n<p>The Scorecard Metrics section measures the following statistics related to session dominance:<\/p>\n<ul>\n\n\n  <li><b>Buy Mkt Dominance<\/b> \u2014 Total traded Buy volume for an instrument during the session.<\/li>\n\n  <li><b>Sell Mkt Dominance<\/b> \u2014 Total traded Sell volume for an instrument during the session.<\/li>\n\n<\/ul>\n\n\n\n<h2>Identifying Order Book Dominance<\/h2>\n\n<p>Using the <a href=\"cv-cluster-view-cluster-scorecard.html\">Cluster Scorecard<\/a>, you can view the details of the\n  activity that triggered the session dominance score.<\/p>\n\n\n\n<p><img decoding=\"async\" class=\"img-responsive\" src=\"https:\/\/library-test.tradingtechnologies.com\/wp-content\/uploads\/2025\/12\/dom-session-scorecard-1.png\" alt=\"\"><\/p>\n\n\n<p>For example:<\/p>\n<ol>\n  <li>The <b>Buy Avg Top Qty<\/b> shows that the average quantity of the top five price levels was &#8220;5&#8221;. The average\n    quantity is represented by the lightly shaded portion of the bar graph.\n  <\/li><li>The <b>Buy Max dominance<\/b> metric shows a traded volume of &#8220;25&#8221;, which dominated the Buy side volume for the\n    instrument. The dark shaded portion of the graph represents Buy Market Dominance.<\/li>\n\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Order Book Dominance occurs when a single trader&#8217;s resting orders make up the majority of the disclosed  [&hellip;]<\/p>\n","protected":false},"author":2,"template":"","meta":{"_acf_changed":false,"footnotes":""},"docs-category":[501],"class_list":["post-7246","doc","type-doc","status-publish","hentry","docs-category-trading-behaviors-models"],"acf":[],"_links":{"self":[{"href":"https:\/\/library-test.tradingtechnologies.com\/ja\/wp-json\/wp\/v2\/doc\/7246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/library-test.tradingtechnologies.com\/ja\/wp-json\/wp\/v2\/doc"}],"about":[{"href":"https:\/\/library-test.tradingtechnologies.com\/ja\/wp-json\/wp\/v2\/types\/doc"}],"author":[{"embeddable":true,"href":"https:\/\/library-test.tradingtechnologies.com\/ja\/wp-json\/wp\/v2\/users\/2"}],"version-history":[{"count":0,"href":"https:\/\/library-test.tradingtechnologies.com\/ja\/wp-json\/wp\/v2\/doc\/7246\/revisions"}],"wp:attachment":[{"href":"https:\/\/library-test.tradingtechnologies.com\/ja\/wp-json\/wp\/v2\/media?parent=7246"}],"wp:term":[{"taxonomy":"docs-category","embeddable":true,"href":"https:\/\/library-test.tradingtechnologies.com\/ja\/wp-json\/wp\/v2\/docs-category?post=7246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}