Level 3

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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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    Learning investing basics includes understanding the difference between an index fund and an exchange-traded fund, or ETF. ... Read Full Answer >>
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    As of February 2015, commodities that are not tradable include diamonds, tomatoes, carbon dioxide, lemons, eggs, potatoes, ... Read Full Answer >>
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