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What is Level 2 market data?

In one line: Level 2 is a stock data screen showing waiting buy and sell orders at several prices beyond the best bid and ask, so you see the depth of the market.

Trading glossary · Updated 2026-10-21

Level 1 vs Level 2

• Level 1: the best Bid and ask, the last price and volume. What most apps show.
• Level 2: the best bid and ask plus the next prices below and above, with share sizes at each.

Level 2 is the stock version of an Order book. Some brokers include it free. Others charge a data fee.

A simple example

The best price to buy is $31.12, but only 200 shares sit there. A 1,000-share market buy would also take the $31.13 level and most of the $31.15 one.

Below, 1,800 shares wait at $31.09. That's a lot of buying interest close to price, for now.

Why it matters

Level 2 helps with getting in and out. You can see how thin the market is before you send a big order. You can pick a limit price that's likely to fill.

For active day traders it adds detail. For swing traders, it's rarely needed.

A common mistake

Reading Level 2 as a crystal ball. Big orders can be pulled in a split second. Some orders are hidden. Orders on other venues may not show.

Placing large orders you never mean to fill, to fool others, is called spoofing. It's illegal, but it shows why the screen can't be fully trusted.

Our order types comparison shows which order fits which moment. For the chart side, start with support and resistance.

Questions