Level1/2/312 May 2020 12:32
Thanks Bigbench, Passiton, Mcfirth
I see why you guys are forward thinking and gustimete potential SP forecasting.
Just for newbees here from my little search: to read on below . I am yet to see an order book and how it looks for Hemo level 2 as it stands now . Can anyone post it here at the current level to educate myself further . Thxs again M Kumar
Level 1 vs. Level 2 Quotes vs level 3
Level 1 quotes provide the best real-time bid/ask for a given security. By contrast, Level 2 quotes go a step further by offering real-time quotes for each market maker. The added granularity helps active traders determine the magnitude of buy and sell orders at different prices (market depth) and shows where most orders are concentrated among market makers (order book).
For example, suppose that an active trader sees that Acme Co. has a Level 1 quote showing a $5.00 price with a $5.10x100 ask and a $4.90x500 bid. The trader may assume there is strong support at $4.90 with an order for 500 shares and relatively weak resistance at $5.10 with just 100 shares on the market. However, Level 2 quotes may show an order for 1,000 shares at $5.11 and no orders below $4.90 until $4.85, which makes the stock look a lot weaker than the Level 1 quotes would imply.
There are also Level 3 quotes, but these are restricted to the National Association of Securities Dealers (NASD) member firms and include the ability to enter quotes and execute orders.