RE: 'Noob' L2 question3 Aug 2014 09:59
Hi Crispy
L2 and the live bid/ask are what the MMs state they will guarantee as a price for a certain number of shares.
On L2 you can see how many shares they will guarantee.
As to why they may trade at a different price, that depends on numerous variables. How many shares do they have or need, what is the buy/sell pressure, what midprice.do they need to cover their risk etc.
So if they say they have 10k shares at 3.5 ask, and you try to buy 10k shares, they are required to sell to you 10k shares at.that maximum price.
In my experience, if you try to buy/sell an amount the MMs say they have and your broker says it needs a negotiated trade, then you should phone your broker rather than do that trade online.