Questions tagged [level-2-quotes]
11 questions
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Level 2 manipulation: types and how to spot
I've heard in quite a few trader interviews and trading videos to be wary of manipulation tricks used in Level 2 (Depth-of-Market [DOM] and Time-of-Sale [TOS]) to deceive "retail" traders, yet I have found very limited resources detailing the types…
Dustin
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Live market data confusion
I have been exploring different data packages for a while and I learned that simply level 2 means top of the book (best bid/offer) for a specific exchange. In order to see other “worse” bids and offers for each exchange, one has to get a specific…
miran80
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Why doesn't every successful trade appear on the Level 2 order book?
I have noticed that not every successful trade appears on the Level 2 order book. Particularly for illiquid shares. Take the example below, where the book is filled with Market Makers. A lot of the successful trades made (Trades section) don't ever…
jmat
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What are the risks of placing limit orders on illiquid securities without knowing the Level 2 quotes?
I only have access to Level 1 quotes (best bid and ask) for some illiquid securities. Suppose I place a buy limit order on such a security based only on the Level 1 quotes. What are the risks I could face if I have no knowledge of the rest of the…
Flux
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Difference between limit order book and level 2 quotes
Is there any difference between 'Level 2 quotes' and 'Limit Order Book'? Are they different words describing the same thing? i.e the buy and sell orders that are queued up with different market makers and ECNs waiting to be filled?
Victor123
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Level 2 question: orders filled at best offer price not moving the the size of best offer
Suppose I have a best offer on Level 2: 200 shares at $2. If I place a bid for 100 shares at $2, I would expect level 2 to show the best offer to be 100 shares at $2 after my order is filled. But I don't see that happening. What could be the…
user231536
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Level 2: What do the different order types on LSE represent?
Here are a list of successful trades from a Level 2 order book. The column to the left of the time the trade went through is the "trade type". It is usually one of three things:
AT
O
Blank
Is anyone able to give a description of each? As I…
jmat
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What exactly are Level 2 quotes, and how are they related to the limit order book and "market depth"?
I am trying to understand the definition of "Level 2 quotes" and their relationship to the "limit order book" and "market depth" ("depth of market"). I have noticed three possible competing definitions of "Level 2 quotes":
"Level 2 shows the best…
Flux
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Do level 2 quotes help a non day trader?
My broker is trying to sell me expensive data packages that show level 2 quotes. If I am not a day trader and my minimum holding period is 3-4 days, do I get any advantage by purchasing level 2 quotes?
I thought level 2 quotes were only for HFT…
Victor123
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What does MMID refer to in this screenshot?
When looking at a level 2 table, we'll usually see:
So we see 2 tables, one for bids and one for asks. For each, we see 3 columns. What I don't understand is the MMID column.
I understand that it stands for Market Maker ID. But as far as I know, a…
YoavKlein
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Level 2 Ask Price
In the market depth image shown, watching in real-time, I noticed this behavior. The ask volume (260,000) wouldn't change even though transactions on the right kept hitting the ask price in volumes greater than the 260,000 displayed. Is is possible…
jwats
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