What Level 2 shows
Level 2 data displays the order book depth—all current bids and offers at different price levels, along with the market participants (market makers, ECNs) providing those quotes.
Bid Side (Buyers)
- • Price levels below current market
- • Size (number of shares) at each level
- • Market maker or ECN providing quote
- • Time priority (first come, first served)
- • Aggregate size across all participants
Ask Side (Sellers)
- • Price levels above current market
- • Available shares at each level
- • ECN/MM codes (NSDQ, ARCA, etc.)
- • Queue position importance
- • Total liquidity visible
Key Market Participants You'll See
- • NSDQ: Nasdaq market maker
- • ARCA: NYSE Arca ECN
- • BATS/BZX: Cboe exchanges
- • EDGX: Cboe EDGX
- • IEX: Investors Exchange
- • MEMX: Members Exchange
- • PSX: Nasdaq PSX
- • LTSE: Long Term Stock Exchange
Level 2 ≠ full depth; 'TotalView'/depth feeds show entire order book (paid).
Nasdaq TotalView InformationTime & Sales tape
The Time & Sales window shows completed transactions in chronological order—actual trades that occurred, not just quotes.
What Each Print Shows
Time & Price
- • Exact execution time
- • Trade price
- • Uptick/downtick indicator
- • Previous trade reference
Volume & Size
- • Share quantity
- • Block trade indicators
- • Cumulative volume
- • Lot size variations
Execution Details
- • Exchange/ECN where trade occurred
- • Trade conditions (if any)
- • Market vs limit order indication
- • Intermarket sweep orders (ISO)
Limitations
🚨 What Level 2 Can't Show You
- • Hidden liquidity: Iceberg orders and reserve size
- • Dark pools: Large institutional orders trading off-exchange
- • Stop orders: Only appear when triggered
- • Algorithm behavior: Smart order routing and execution tactics
- • Cross-trading: Internal matching within brokerages
💡 Pro Tip
Don't rely on Level 2 alone. The most valuable use is confirming setups from technical analysis, timing entries and exits, and understanding short-term liquidity. It's a tool for execution, not strategy.
Frequently Asked Questions
Is Level 2 worth the monthly cost?
Only if you're an active day trader making multiple trades per day. For swing traders or investors, Level 1 data is usually sufficient. The cost should be offset by improved execution.
Why do I see fake walls that disappear when price approaches?
These could be algorithmic probes, bluffing tactics, or orders with hidden size that gets pulled. This is why Level 2 reading requires experience and shouldn't be your only decision factor.
What's the difference between TotalView and regular Level 2?
TotalView shows the complete order book depth—every order at every price level. Regular Level 2 typically shows only the best quote from each market participant, limiting your view of total liquidity.