Level 2 Data
The full order book showing all visible bids and asks beyond the best inside quote, including size at each price level.
Level 2 data (also called Level II or market depth) displays the complete visible limit order book: multiple price levels on both the bid and ask side, with quantity at each level. It shows more than the simple best bid/ask of Level 1.
Traders use Level 2 to gauge immediate supply and demand, spot large resting orders (walls), identify iceberg order behavior, and assess whether the inside spread is supported by real depth or thin air.
On NASDAQ, Level 2 also shows which market maker or ECN is quoting at each level, which provides additional microstructure context.
Related Terms
Bid-Ask Spread
The gap between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask). Crossing it is the minimum cost of an immediate trade.
BeginnerIceberg Order
A large order split so only a small visible portion shows in the order book; the rest is hidden and refreshes automatically as each slice fills.
AdvancedMarket Depth
The volume of open buy and sell orders at various price levels — a measure of how much size the market can absorb without large price movement.
IntermediateOrder Book
The real-time record of all outstanding buy and sell limit orders for an asset, organized by price level.
BeginnerOrder Flow
The stream of incoming buy and sell orders hitting the market — analysis of order flow reveals who is aggressive and where price is likely headed next.
Advanced