What is the difference between Level 1 and Level 2 stock 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.
What is Level 3 stock data?
A level III quote is pricing information about a security provided by a trading service. It includes the real-time bid price, ask price, quote size, price of the last trade, size of the last trade, high price for the day, and the low price for the day.
Do I need Level 2 to day trade?
The Level II price chart represents a current snapshot of displayed resting limit orders (the different bids and asks) for that security. If one of the open orders on the Level II chart executes, it will become a trade and appear as a data point on the price chart.