![]() Each entry shows who placed the order, how many were purchased, and at what price. The lowest current ask prices in order from lowest to highest.Each entry shows which investor placed the order, how many they ordered, and the price they paid. The highest current bid prices in order from highest to lowest.Rather than just seeing the most recent price, they can see as many as 5-10 of the most recent bid sizes, including orders that have been placed but still need to be filled. Level 2 data shows what is called the "order book" for an asset, or the list of orders that are placed for buying and selling a particular asset over time. While Level 1 market data is certainly helpful for traders not concerned about small price changes, Level 2 market data helps experienced and short-term traders like day traders by offering the WHY behind price movements. For some beginner or long-term traders, it suffices and can help them guide their purchases. ![]() Level 1 data provides an outline or overview to use when buying and selling stocks. The first type of data that investors encounter is typically level 1 data, as you can find this data on a variety of free websites. In the overall market, level 2 data will show you the bid-ask ratio and best bid and offer (BBO). Last sizes, which is the order size requested during the last stock trade.Last prices, or the price at which the most recent order was completed at.Asking prices, which dictates the lowest price that the stock sellers have indicated they will sell for.Bid sizes, or the number of shares requested within the given order.Bid prices, which is the most that the buyer wants to pay.In addition, you will see important data like: Images provided are not current and any securities are shown for illustrative purposes only.Īs you start looking through a Level 2 quote, you will see electronic communication networks (ECNs), like NYSE Arca, which are order placement systems. Picture of level 2 market data in the moomoo app This data is a critical component for many trading strategies. Market data, also called an order book, provides investors with key insights regarding the bid scope and price levels of quotes submitted to an exchange. We will explore what you need to know about why level 2 data matters, what it can uncover, and how you can use this data to improve your investing strategy. These data-driven decisions help you make sound decisions based on research not emotions.Īs you begin to explore market data, you will likely hear about both level 1 and level 2 data. The more you know about the activity of a given stock, how the company performs, and how the stock responds to different market situations, the better you may be able to predict the stock's future behavior and make wise decisions that grow your portfolio. Build your trading strategy with level 2 market dataĭata is the key to success when it comes to making smart trades on the stock market.
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