Level 2 Data Reading
An excerpt from our Academy Module.
Executive Summary: The "Why" and "What" of Level 2 Data
Level 2 data, also known as market depth or the order book, provides comprehensive insights into the real-time bids and offers for a security beyond the standard Level 1 market data (best bid and offer). Understanding Level 2 data empowers traders, particularly at the institutional level, to decode market dynamics more thoroughly, identify liquidity pools, and anticipate price movements with greater precision. It profiles the depth of t...