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. Level 3

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

    An index of 500 stocks chosen for market size, liquidity and ...
  4. Bid-Ask Spread

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

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

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center