Level 3

DEFINITION of 'Level 3'

A trading service consisting of everything in Level 2, plus the ability to enter quotes, execute orders and send information. This service is restricted to NASD member firms that function as registered market makers.

Also know as "Level III".

BREAKING DOWN 'Level 3'

This allows you to enter bid/ask quotes as the trades are being executed right in front of you. It's the fastest way to execute a trade.

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  2. Do I need to be a U.S. citizen to sit for any NASD examinations?

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    The correct answer is b. The NASD defines a “complaint” as adverse communications that are in writing. Choices I and III ... Read Answer >>
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