Level 3

What Does Level 3 Mean?
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 Terms

Level I
Level II
Market Maker
Nasdaq
More Related Terms

Related Links

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.
How To Work Around A Market Maker's Tricks - Ensure that you and your clients are getting the best deal by avoiding these three pitfalls.
Trade free for 30 days + get $100 when you open an account. Plus, get straightforward, $9.99 Internet equity trades and no maintenance fees.

Rate this Term: Your Rating: Overall Rating: Vote Now!