Day Trading Encyclopedia
Level 2 Screens
Introduction to Level 2
Level 2 screens make a great companion to stock charts, providing an even deeper level of insight into the stock market.
Supply and Demand
Level 2 is used to depict supply and demand levels in the stock market. Understanding how to properly analyze this information is a crucial part of utilizing level 2 screens.
Bid, Ask, and Spread
The bid, ask, and spread are a few of the key components of a level 2 screen.
Level 2 is based around supply and demand, and market makers are responsible for fulfilling both the supply and demand of the markets.