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Nasdaq
Nasdaq is the largest United States electronic stock market and listed an estimated 3,300 companies. Nasdaq has various platforms that are deliver quotes called Nasdaq Level I, Nasdaq Level II, and Nasdaq Level III.
Nasdaq Level I
This particular platform provides the highest bid price and the lowest ask price. Level I does not provide information about limit order, the total quality of shares being bid, or which market maker is buying or selling a stock. This lack of information concerning the market’s depth makes Level I a bad choice for the day trader who is serious about success and wishes to be well informed.
Nasdaq Level II
This is platform offers more information than the bare essentials provided by Level I. Nasdaq Level II offers the same basic information as Level I such as last, last size, change, bid, ask, quote size, open, high, and low. The ticker is also present in Level II so that real time trades can be tracked. On the left side of Level II, the current market bids are ranked in order from best to worst. On the right side of Level II, the current offers are ranked from best to worst. Each line contains three vital parts. These three parts are the market maker id, the price bidding or offered at, and the number of shares being bid or offered. For example if a trader look at the right side of Level II, the selling side, and sees the following line, (MSFT 87 ½ 20), it would mean that Microsoft is selling 2,000 shares for 87 ½.. Shares are always denoted by the hundreds so it is understood that the 20 with the line stands for 2,000. Nasdaq Level II is the most widely used platform by day traders because of the increase in the amount of information made available.
Nasdaq Level III
This platform is only available to Nasdaq member firms who are registered as Market Makers and to a number a very large brokerage firms. It provides all the information included in Nasdaq Level I and Nasdaq Level II but allows the Market Maker to enter and change quotes, execute orders, and send out confirmation of trades.
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