What is the difference between Level 1 and Level 2 data?
Level 1 quotes provide basic price data for a security including the best bid and ask price + size on each side. Level 2 quotes provide more information than Level 1 quotes by adding market depth. Level 2 shows market depth typically up to the 5-10 best bid and offer prices.
How do you get Level 2 data?
You can find the Level II market data for securities traded on Nasdaq on the security's detail page. On mobile, tap the arrow next to the current trading price. On web, click Expand underneath the price chart, then click Add Data to add the Order Book and Depth Chart to your view.
Is Level 2 market data worth it?
Level II can provide enormous insight into a stock's price action. It can tell you what type of traders are buying or selling a stock, where the stock is likely to head in the near term, and much more.
Why is Level 2 data useful?
Level 2 market data provides insight into how the market is moving. The details in this information tell investors not just how much an asset is worth but also who is trading it and how much.