Bid size: The amount traders are looking to buy at the bid price.
Bid price: The highest price a buyer is willing to pay.The more basic of the two types, level 1 market data generally provides the following information To understand level 2, or level II market data, first let’s look at level 1. It is general information only and we recommend that you do your own research and/or seek professional advice before risking your money on an investment - regardless of whether you use level 1 or level 2 data! Plus, we’ll share some great resources where you can find out more, and introduce our powerful online tool we recommend using to track, analyze and report on your trades and portfolio, regardless of whether you’re a buy-and-hold investor or an active trader using level 2 data to research stocks.īefore we continue, an important note: This post is not intended to be financial or investment advice. We’ll also show you a couple of examples of level 2 quote screens and share some tips on reading and interpreting them. This post is going to walk you through why this data exists, how to read the information on a level 2 quote screen and the reasons you might want to. That’s because the information it provides gives the traders a clearer picture of a stock’s supply at demand and a variety of price levels. Level 2 market data is the realm of the trader.
Welcome to the world of level 2 market data. In other words, imagine having a lens through which you could see a stock’s liquidity, supply and demand in real time, before the rest of the market found out. Imagine knowing the sizes of those orders, the speed at which buyers found sellers for them, and the prices of not only the highest and lowest buy or sell order, but the prices of 10 or more at any given time. Imagine knowing how many traders were placing orders in a stock before those orders were fulfilled. If you’re a trader, or you’d simply like to learn more about level 2 market data, this post explains how it works, how to interpret it, and demonstrates level 2 market data in action. Level 2, or level II, market data refers to real-time access to an additional layer of information about the market’s depth and momentum.
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