Level 1

AAA

DEFINITION of 'Level 1'

A trading service that displays real-time bid/ask quotes and last sales for securities trading on a stock exchange. Level 1 quotes supply basic information that may suffice for most investors, but not for active traders. Such traders generally need the complete order book and market depth information that is offered by Level 2 quotes.

INVESTOPEDIA EXPLAINS 'Level 1'

Level 1 price quotes were a relative rarity before the advent of the Internet and online trading, but are now offered without charge by a number of financial portals and websites. Reliable Level 1 quotes aid investors in getting better prices for security purchases and sales, especially in fast-moving markets where investors may prefer limit orders rather than market orders.

RELATED TERMS
  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Bid-Ask Spread

    The amount by which the ask price exceeds the bid. This is essentially ...
  3. Level 2

    A trading service consisting of real-time access to the quotations ...
  4. Level 3

    A trading service consisting of everything in Level 2, plus the ...
  5. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  6. Paper Trade

    Using simulated trading to practice buying and selling securities ...
Related Articles
  1. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  2. Benchmark Your Returns With Indexes
    Mutual Funds & ETFs

    Benchmark Your Returns With Indexes

  3. What do the S&P, Dow and Nasdaq futures ...
    Investing

    What do the S&P, Dow and Nasdaq futures ...

  4. What's the difference between a Nasdaq ...
    Brokers

    What's the difference between a Nasdaq ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center