What’s the desire of any day trader? Having access to the most comprehensive market information.
Level 2 market data is just that – a detailed view of what’s happening in the markets. It’s essential for day traders as they need to have an accurate understanding of market trends. Level 2 data gives them this information and more.
Let’s look at what Level 2 market data includes, discovering the most common trading tool for day traders who want a competitive edge to make more informed decisions and, therefore, potentially increase their chances of success.
What does level 2 market data include?
Level 2 market data is a type of market data that displays the electronic order book and the price for a particular stock or security.
This information includes:
- the current bid and ask prices
- size of the orders
- number of shares
- identity of the market makers
By looking at the order book, traders can get a better sense of the supply and demand for a particular stock and the pressure that individual market makers and traders are putting on the price. Level 2 market data allows the monitoring a specific stock in real time.
How is Level 2 market data different from Level 1?
Level 1 market data provides a stock’s current bid/ask prices and displays the last traded price and volume. However, Level 2 market data goes beyond this information and allows traders to see the depth of the market.
Traders can view the standing orders and the order flow contributing to the current bid and ask prices shown in the level 1 data. This means, for example, you can see the best five to ten bid and ask prices, along with the number of shares being bid for or offered at those prices.
Important: Level 2 market data is not a crystal ball. It should be used for analysis and to improve your trading plan.
How can traders access Level 2 market data?
Level 2 market data is widely available through brokerages and trading platforms. However, the cost of accessing Level 2 data may vary depending on the broker or platform you use. EdgetoTrade is one of them.
Many professional traders already use EdgeToTrade to improve their trading decisions, give them an edge in preparing their trade plan and offer flexibility and tools that other applications do not provide.
What is EdgetoTrade?
EdgeToTrade is a financial research platform designed to give traders an edge by providing them with comprehensive real-time and historical market data.
Here’s how the platform achieves this.
Detailed Statistics For Any Stock
EdgeToTrade provides detailed statistics for any stock, allowing traders to make informed decisions based on a wealth of information. The tool gives access to up to 14 years of historical data, offering valuable insights into the past performance of watchlists and other useful metrics.
Real-Time News & Financials
The platform offers real-time news and financial information, keeping traders updated with the latest developments that could impact their trading decisions. All plans include a real-time market scanner, providing immediate access to market data without delay.
With EdgeToTrade’s comprehensive scanner, traders can scan all US-listed stocks to identify the best trading opportunities. This feature helps to filter out the noise and focus on the most promising prospects.
The platform allows traders to customize the data they need, helping them to get away from the boilerplate investing metrics that are not as applicable to day and swing trading.
Disclaimer: these articles are for educational purposes only. Market analysis, prices, news, trade ideas, or any other information within this site or the chatroom is not investment advice.