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".
	Investopedia explains '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.

Related Definitions

Level 1

A trading service consisting of real-time bid/ask quotes for securities trading on the Nasdaq stock market and comparable information for securities quoted in the OTC Bulletin Board ...
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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 ...
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Market Maker

A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for ...
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- Nasdaq
  
  A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the Nasdaq was the ...
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Electronic Trading Tutorial

Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
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How Brokers Can Avoid A Market-Maker's Tricks

Ensure that you and your clients are getting the best deal by avoiding these three pitfalls.
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