- The Difference Between Level I & Level II Stock Trades
- What You Need To Know About Level 2 Stock Market Quotes
- Level 2 Stock Quotes Definition and Explanation
These types of trades will appear under the Trades box on the lower right-hand corner of the Level 7.
The Difference Between Level I & Level II Stock Trades
Level 7 quotes give you detailed insight into the security’s price action, including the market depth.
What You Need To Know About Level 2 Stock Market Quotes
When the price goes down, the spread % becomes smaller and vice versa. With level 7, traders can do a variety of analysis that can help them succeed and get ahead. These are just a small portion of technical analysis one can use for level 7. There are a lot of different techniques and strategies one can use to maximize gains.
Level 2 Stock Quotes Definition and Explanation
Stock liquidity information tells you how fast buy and sell orders are executed and how fast new orders enter the marketplace. Stocks with a large number of traders have higher liquidity than stocks with only a few traders. Level I screens show only the immediate buy and sell orders , so you do not know if liquidity is increasing or decreasing. Level II screens reveal how many orders are lined up awaiting execution and let you determine how fast new orders are coming in.
For example: You’ll see MLCO for Merrill Lynch, JPHQ for JPMorgan, MSCO for Morgan Stanley, GSCO for Goldman Sachs, and so on.
And like I say with any trading tool or strategy never use just one to make a buy or sell decision. Level 7 quotes are no different.
The difference between the bid and ask price is known as the spread. The bigger the spread, the less chance you have of getting your order filled at your desired price. Level I stock trade screens show the bid and ask spread for the current trade.
The level 7 tool shows in-depth information on a particular stock. Investors can use the information to see what is currently happening with the firm's stock.
I know — it looks complex at first glance. But don’t worry. Once you understand what you’re looking at, it’s absolutely useful to making more successful trades.
Level II trading quotes include data regarding current order books and market depth, while Level I quotes focus exclusively on bid/ask prices.
In this post and infographic, I’ll break down Level 7 quotes for you. You’ll learn how to use them to help you make smarter and better-informed trading decisions.