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".


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.

  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Level 2

    A trading service consisting of real-time access to the quotations ...
  3. Level 1

    A trading service that displays real-time bid/ask quotes and ...
  4. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  5. Paper Trade

    Using simulated trading to practice buying and selling securities ...
  6. Ring Trading

    The method by which certain types of investment business is conducted ...
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