# Level 2 quotes

> Market data showing the full depth of bids and offers at multiple price levels, not just the best bid and ask.

Source: https://www.quantisnow.com/glossary/level-2
Topic: Glossary / Market structure
Also known as: Level 2, Level II, Level II quotes, market depth, depth of book
Last updated: 2026-10-27

Level 2 quotes are market data that show the depth of the order book: the resting bids and offers at several price levels beyond the best bid and ask, often with the size at each level and the market participant or exchange posting it.

## How it works

Market data is often described in levels:

- **Level 1** shows the best bid, best ask, their sizes and the last trade. This is essentially the [NBBO](https://www.quantisnow.com/glossary/nbbo).
- **Level 2** adds the queue of bids below the best bid and offers above the best ask, across exchanges or from a single exchange's full depth feed (for example Nasdaq TotalView).

A Level 2 screen might show 5,000 shares bid at $12.40, 8,000 at $12.39 and 20,000 at $12.35, with 3,000 offered at $12.42 and 15,000 at $12.45. Participants are often identified by exchange or by market participant ID (MPID).

Level 2 is usually paired with "time and sales," the tape of executed trades.

## Why it matters for traders

Day traders use Level 2 to judge short-term supply and demand: large bids can act as support, stacked offers as resistance, and a thinning book signals that a move could accelerate. It also shows how much size you can trade before moving the price.

The limits are important:

- **Hidden and reserve orders** do not show their full size, and [dark pool](https://www.quantisnow.com/glossary/dark-pool) liquidity is invisible.
- **Orders can vanish instantly.** Large displayed orders may be canceled before price reaches them. Placing orders you intend to cancel to mislead others (spoofing) is illegal, but the book is still not a commitment.
- **Off-exchange volume** means a meaningful share of trading never touches the displayed book.

## FAQ

### Do I need Level 2 to trade?

No. Most long-term investors never use it. It is most useful for active traders working in less liquid stocks, where book depth materially affects fills.

### Is Level 2 data free?

Some brokers include it, others charge exchange data fees for full-depth feeds.

## Related terms

- [NBBO (national best bid and offer)](https://www.quantisnow.com/glossary/nbbo.md): The highest bid and lowest offer for a stock across all US exchanges, the benchmark brokers use for best execution.
- [Bid-ask spread](https://www.quantisnow.com/glossary/bid-ask-spread.md): The gap between the highest price a buyer will pay (the bid) and the lowest price a seller will accept (the ask) for a security.
- [Market maker](https://www.quantisnow.com/glossary/market-maker.md): A firm that continuously quotes both a buy and a sell price in a security, earning the spread in exchange for supplying liquidity.
- [Limit order](https://www.quantisnow.com/glossary/limit-order.md): An order to buy or sell at a specified price or better, which controls the price but does not guarantee the order will fill.
- [Dark pool](https://www.quantisnow.com/glossary/dark-pool.md): A private trading venue that matches buy and sell orders without displaying quotes publicly, reporting trades only after they execute.

## On Quantisnow

- [Stock exchanges explained](https://www.quantisnow.com/guides/stock-exchanges-explained)
- [Stock exchanges](https://www.quantisnow.com/exchanges)