Level 1 and Level 2 data shows and quotes in real time for being traded on a .
Level 1 data refers to the lowest ask and highest bid currently offered, what’s known as the best bid offer, or inside . Level 2 data refers to current quotes for the best bids and asks being offered by and known as the top of the book. These Level 2 quotes are for each and every traderWhat is a trader? A trader is a person who buys and sells... More of that securityA security is a financial instrument, such as stocks and s... More. Level 2 data usually appears on a split screen, with bids displayed on the left and asks displayed on the right.
Using Level 1 and Level 2 in trading
Level 1 and 2 data is usually used for trading on the or on bulletin boards. The real-time quotes allow traders to follow the markets as they move, second by second, and by a trader. The of a traded security lets traders interpret the data for short-term movements, enabling them to decide when to on that security. It is a firm indicator of how participants’ interest in that security is developing and who is matching the .
All Level 1 and 2 data is public, making it legal for traders to buy and sell at a profit because it is not insider trading.
Level 2 in the UK
In the UK markets, Level 2 refers specifically to an order-based trading platform called SETS (stock exchange electronic trading system), which matches bids and asks for stocks listed on the , the FTSE Eurotop 300 and some other blue-chip indices. Matching is done is according to price and , without or marketWhat are value stocks? A value company is a company that app... More makers. Traders buy and sell directly to each other.
Popular stocks with high and trading volume can be matched to traders very quickly although may be very narrow. The platform is less useful for traders wanting to buy or sell less-liquid securities as matching may take days or even weeks.
