What is the difference between Level 1 and Level 2 market data?

Level 1 market data is generally sufficient for investors like position traders and swing traders. Level 2 data has everything Level 1 data has and more. Level 2 data builds on the information found in Level 1 data by including market depth.

What is Level 2 stock data?

Level 2 stock data shows all of the orders that have been placed at prices below the best bid price or above the best ask price. These are limit orders that could be executed if the price of a stock were to fall or rise. Level 2 data is also known as order book or market depth data because it reveals the full range of existing orders for a stock.

What is Level 2 data?

Level 2 data is essentially an order book showing information on Nasdaq Stock Market stocks. It shows lists of the ask prices and current best bids from market-makers and general participants alike. This information can provide traders with helpful information, such as awareness of price actions.