The investor can then tell how many buy.

Level ii market data. The strategy would require piggybacking on. Level ii shows you who the. However, for active traders and investors, level 2 data will provide greater market depth and insights.

To understand level 2, or level ii market data, first let’s look at level 1. The level 2 market data provides investors with 40 levels of the best bids and offers that have been made upon a particular stock. Level 2 is a generalized term for market data that includes the scope of the bid and ask prices for given security.

Level ii shows you the order book for nasdaq stocks, including the best bid and ask prices by various market makers and other market participants. Level 2 (ii) market data is offered by data providers at a premium to level 1. Level 2 market data is a set of detailed information about asset prices, offers and trading volumes.

Also called depth of book, level 2 includes the price book and. Some traders like to look at how many shares are. Level 2 market data provides additional information to level 1 market data, it shows the highest 5 or 10 (depends on market and instrument) bid prices/bid sizes, and the.

Investors can use level 2 data to differentiate between different market players such as retail and institutional investors. For most investors, level 1 data will be adequate for their needs. Level 2 trading is a tool used by traders to see bid ask spreads and where the buyers.

It offers extra information that is often not utilised by normal day traders and is almost certainly irrelevant to. Level ii market data might be required for some trading strategies that attempt to isolate strong buyers or sellers in the level ii data. The below example shows the 2100 market maker signal code (let the price run).