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Posted On: 11/05/2019 12:56:46 PM
Post# of 86057
Basics of Level 2
Level 2 provides users with depth of price information, including all the available prices that market makers and electronic communication networks (ECN) post.
Level 1 offers enough information to satisfy the needs of most investors, providing the inside or best bid and ask prices. However, active traders often prefer Level 2 because it displays the supply and demand of the price levels beyond or outside of the national best bid offer (NBBO) price. This gives the user a visual display of the price range and associated liquidity at each price level. With this information, a trader can determine entry and or exit points that assure the liquidity needed to complete the trade
https://www.investopedia.com/terms/l/level2.asp
Level 2 provides users with depth of price information, including all the available prices that market makers and electronic communication networks (ECN) post.
Level 1 offers enough information to satisfy the needs of most investors, providing the inside or best bid and ask prices. However, active traders often prefer Level 2 because it displays the supply and demand of the price levels beyond or outside of the national best bid offer (NBBO) price. This gives the user a visual display of the price range and associated liquidity at each price level. With this information, a trader can determine entry and or exit points that assure the liquidity needed to complete the trade
https://www.investopedia.com/terms/l/level2.asp
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