Level 2

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DEFINITION of 'Level 2'

A trading service consisting of real-time access to the quotations of individual market makers registered in every Nasdaq listed security, as well as market makers' quotes in OTC Bulletin Board securities.

BREAKING DOWN 'Level 2'

This allows you to watch the trades being executed right in front of you. Also known as Level II.

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RELATED FAQS
  1. What's the difference between an index fund and an ETF?

    Learning investing basics includes understanding the difference between an index fund and an exchange-traded fund, or ETF. ... Read Full Answer >>
  2. What commodities are not tradable?

    As of February 2015, commodities that are not tradable include diamonds, tomatoes, carbon dioxide, lemons, eggs, potatoes, ... Read Full Answer >>
  3. How does investing in the banking sector differ between the U.S. and Canada?

    Banks in the U.S. and Canada offer different sets of pros and cons for investors. Shares of all Canadian banks are traded ... Read Full Answer >>
  4. How do I place a limit order online?

    Nearly all trading orders can be placed online through a trading platform usually provided by a broker. A limit order is ... Read Full Answer >>
  5. What is a "pink sheet" in the context of an OTC (over-the-counter) transaction?

    In the over-the-counter (OTC) market, pink sheets are daily publications with bid and ask prices of over-the-counter stocks. ... Read Full Answer >>
  6. What are the SEC (Securities And Exchange Commission) rules about OTC (over-the-counter) ...

    Market trades that occur over the counter (OTC) are less regulated by the Securities and Exchange Commission than those that ... Read Full Answer >>

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