RE: Level 2-information13 May 2020 16:17
Level two is complicated but simply it is more useful for stocks which do not trade on AIM. For example, you can see the order book of buys and sells waiting to be filled on FTSE 100 stocks. Which gives you a clearer picture.
However, on AIM stocks you can only see the market makers and whatever they want to display as bid and ask, you cannot see orders which are waiting to be filled unless the stock is auction. You can see the live price and you can also see the trades that have happen(ed) in real-time.
I would not trade blind on any market and spend lots on live feeds for price, news, etc. But I would say that level two is less transparent on AIM and RSP possible paints a clearer picture. Having live pricing, a news feed, if you are doing this for a living though, is a must.
If you are a medium-term investor it is probably over kill.