NASDAQ Level 2

Many beginners ask us to recommend a Level 2 service so that they can start getting in on the inside of the market immediately. Unfortunately, they are asking us how to run like the wind and they don’t even know how to walk yet.
Please be patient. Learn to Position trade first.

With that said.. let’s get on to the real reason that you came to this page.

All brokers and trading systems provide you with Level 1 data. It includes the Bid, Ask, Open, Close, Amount of Change, Last Trade, etc.

Level 1 screen

level1

Now, for a Position trader that does research at night or on occasion, during the day from work, this is typically all you need.

Level II

However, for the day trader, this is not nearly enough. A day trader needs to know what others are bidding and asking instantly.

It not only shows the Level 1 information it also shows the size of the orders, the ECNs and Market Makers ( MMs ) making those orders plus the Time & Sales (actual order execution of price and size) on the right side.

Additionally, you will need a book or two that explains the structure of the stock markets to include an understanding of Market Makers, Specialists, and ECNs.

Level 2 shows all market participants.

Level II access provides real-time access to the quotations of individual market makers registered in every Nasdaq-listed security as well as the offering or bidding lots that they are looking for. This level of access also gives the name of the market maker looking to trade the stock. It allows traders to see what market makers are showing the most interest in a stock and to identify the patterns for each market maker.