Level 1

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.

BREAKING DOWN '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. Real-Time Quote

    This is the actual price of a security at that moment in time. ...
  2. Order Book

    An electronic list of buy and sell orders for a specific security ...
  3. Display Book

    A detailed tracking tool used on market exchanges that displays, ...
  4. Flash Price

    An up-to-the-minute quote for a heavily-traded stock that is ...
  5. Handle

    The whole number part of a price quote. In a quote the handle ...
  6. Order Driven Market

    A financial market where all buyers and sellers display the prices ...
Related Articles
  1. Retirement

    Electronic Trading: Level I, II and III Access

    There are a variety of ways in which Nasdaq quotes security prices to the public. These levels vary on the amount of information and access they provide to investors. Level I This type of quote ...
  2. Forex Education

    Forex Tutorial: Reading a Forex Quote and Understanding the Jargon

    One of the biggest sources of confusion for those new to the currency market is the standard for quoting currencies. In this section, we'll go over currency quotations and how they work in ...
  3. Trading Strategies

    Introduction To Order Types

    A trade order is an instruction that is sent to a broker to enter or exit a position. Learn about the various types available to investors.
  4. Investing

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
  5. Investing

    How The Internet Has Changed Investing

    Discover the significant impact the Internet has had on how we invest and view the markets.
  6. Options & Futures

    Understanding Gold Quote Prices

    Willing to trade gold but puzzled by gold price quotes and terminology? Investopedia explains how to read gold price quotes.
  7. Trading Systems & Software

    Beginner's Guide To E*Trade Pro: Trading

    E*Trade Pro's order entry system allows traders to create orders for listed (NYSE/Amex) and Nasdaq (NMS, small cap and bulletin board) securities as well as options. Since options are an advanced ...
  8. Trading Systems & Software

    Broker Summary - Interactive Brokers: Analysis And Trading Tools

    Traders and investors can choose from several trading platforms (introduced in the "Services Offered" section of this tutorial). Trader Workstation - TWSIB's Trader Workstation is its most ...
  9. Trading Strategies

    4 Common Active Trading Strategies

    Learn four of the most popular active trading strategies and why active trading isn't limited to professional traders anymore.
  10. Detrimental Traders

    Traders have many different ways of exposing their intentions. Exposing these intentions can definitely have some significant negative consequences.
RELATED FAQS
  1. What is the difference between a quote driven market and an order driven one?

    The difference between these two market systems lies in what is displayed in the market in terms of orders and bid and ask ... Read Answer >>
  2. Why is currency always quoted in pairs?

    When reading currency quotes, you have probably noticed that there is only a single quote for a pair of currencies. Currency ... Read Answer >>
  3. How do I use a limit order in conjunction with a bid-ask spread?

    Understand the concept of the bid-ask spread as it applies to trading and how it impacts the pricing of limit orders used ... Read Answer >>
  4. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  5. Does the closing price have to equal the last price traded?

    Logically and theoretically, the last price traded should be the same as the closing price of a stock. However, the way we ... Read Answer >>
  6. How do I set a strike price in foreign exchange trading?

    Learn about the different order types foreign exchange traders can use to manage positions at certain strike prices and how ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center