Level 2 is only one piece of a good trade — join the SteadyTrade Team for all the rest! Level 2 quotes are the lines of colorful text and numbers under a stock’s chart … They don’t come standard on every trading platform. And they can seem overwhelming for new traders. Once you understand what they mean, you’ll have a secret weapon.
What is a Level 2 stock market?
Level 2 shows you a stock’s supply and demand in real time. It’s comprised of all of the buyers and sellers with open orders. It’s also comprised of tricky high-frequency traders and manipulative market makers. More on that later… It might not be as easy to see Level 2’s relationship to price as the baseball card example.
What is a Level 2 price quote?
Level 2 quotes are price quotes for limit buyers and sellers waiting to get their orders filled… Learning how to read them will tell you who’s buying and who’s selling. It will tell you how many shares they’re looking to buy/sell and at what price. You need two to tango on a stock order.
