What is Level 2 data?


Level 2 data is far more comprehensive than Level 1 data. It gives access to all the information presented by Level 1 data, and also displays the full depth of the market which is essential for an active investor. It also helps investors to gain a better understanding of the current trends in a security and which technical factors may be influencing the price.

Level 2 data typically includes the following:



Please note, for details on the annotations for the top half of the screen, please view Level 1 data trading screen
.

A (Volume)
- Total number of shares to be executed on each side of the order book.

B (Depth) - The total number of orders on each side of the order book.

The Yellow Strip

C - The number of orders to be executed at that price. For example, there are 3 orders to be executed at 1267p for 7,735 individual shares on the bid side.

D - The total number of shares available to trade at the best price.

Buy and Sell columns


The two columns are simply a list, in price/time order, of all buy and sell limit orders currently placed in the order book.


The basis behind the order book buy and sell quotes is that they are all limit orders placed in the system by individuals, companies or institutions. In the case of the bid orders they are all willing buyers, but only at 1267p or lower down and for the orders on the offer side, willing sellers who wish to receive 1269p or more.


For example, looking at the bid orders column, the ‘top’ order is someone who wishes to buy 7,735 shares but is only prepared to pay 1267p. Below are others who do not want to pay that much.

 
To find out where to get Level 2 market data click here.

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