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NASDAQ Level II quotes

T

TubStain

Senior member
Can someone point me to a good website that has a tutorial for the Level II quote system? I'm trying to figure out what I should be looking for, but I have no clue where to start.

Thanks
 
I am trying to find a good site, but level 2 quotes are used basically for day traders looking for an edge. They pull from many sources with more advanced information than a normal user would get. Mostly professional places, business, houses, brokers, day traders use them. Its like a system all in its own, seperate from level 1 quotes.

-Steve
 
Yup, I want to know what I'm supposed to be looking for, and how I can gain that edge. (I'm a somewhat say trader). I've never used level II before, and I recently fot an "upgrade" from my stockbroker, since I make so many transactions a month, they gave me level II access for free. But I have no cluse how to use it.

 
Originally posted by: TranceGOD
Yup, I want to know what I'm supposed to be looking for, and how I can gain that edge. (I'm a somewhat say trader). I've never used level II before, and I recently fot an "upgrade" from my stockbroker, since I make so many transactions a month, they gave me level II access for free. But I have no cluse how to use it.
Click to expand...

It depends very much on the your type of trading if L2 will benefit you in any way. L2 shows you what the current dept of the market it for a particular stock but keep in mind that it doesn't show intention. For instance, a market maker (MM) could be showing 1000 on inside ask but really has 100,000 that must be sold. In this example, the MM doesn't want the price to free fall due to his selling so he'll only show his 1000 shares, but each time he sells it, he'll refresh his quote to show another 1000 on the inside ask. There are numerous scenarioes as well.

Daytraders attempt to gauge supply and demand via L2. If you have the ability to preference MMs that are outside the inside bid/ask, L2 can show who's selling at what price and how many. For instance, this can beneficial in a fast moving market since the inside bid/ask is always getting hit and if your object is to just get in/out, L2 can show you who you'll need to preference.

I don't have any links in my bookmarks but there are free online L2 tutorials out there. More information doesn't always equate to an advantage.
 
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