What is a Level 2 order book?

Level II shows you the order book for Nasdaq stocks, including the best bid and ask prices by various market makers and other market participants. Level II shows you who the market participant is that is making a trade, whether they are buying or selling, the size of the order, and the price offered.

Should you sell a stock on Level 2?

Firstly, by making the stock look well bid it encourages market participants to buy. Andif the market maker is a seller then it makes sense to market the stock attractively on Level 2. Remember, most market participants don’t use a phone broker and so they will get away with this trick more often than not.

What is Level 2 market data?

Level 2 market data is an order book that gives retail traders and institutional players a more detailed set of information about the traded asset.

Where can I get level 2 stock trading data for free?

As a matter of fact, most banks and online brokerage firms offer level 2 stock trading as part of their basic packages. Furthermore, with a quick search, it is even possible to get stocks and ETFs level 2 data for free online. Day trading stocks, ETFs, and especially penny stocks using level 2 data is highly recommended.