Question 1

Is Level 2 data worth it for day trading?

Accepted Answer

Yes, especially for active traders. Level 2 shows you where large orders are stacking up, helping you identify support/resistance levels before they appear on the chart. It's most valuable for low-float and OTC stocks where the order book is thinner and more readable.

Question 2

What is the difference between Level 1 and Level 2 data?

Accepted Answer

Level 1 shows only the best bid and best ask (the inside quote). Level 2 shows multiple price levels of bids and asks with size and source. Level 1 is free from most brokers; Level 2 is typically a paid add-on.

Question 3

How do you read Level 2 market data?

Accepted Answer

Look for large bid orders stacking at a price level (potential support), large ask orders (potential resistance), and changes in order book balance. If bids are growing and asks are thinning, buying pressure is building. All Seeing Eye provides real-time Level 2 data on every stock page.

What Is Level 2 Market Data? How to Read the Order Book

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