What is Level 2 Quotes?

Level 2 quotes represent advanced market data that provides deeper insights into stock trading activity beyond basic Level 1 quotes. While Level 1 quotes show only the current bid and ask prices with their respective sizes, Level 2 quotes display the complete order book, revealing multiple price levels and the depth of market interest. For cannabis stocks trading on major exchanges like NASDAQ and NYSE, Level 2 data shows up to 10 bid and ask price levels, along with the number of shares available at each level. This transparency allows investors to see where significant buying or selling interest exists. For example, if Tilray (TLRY) shows strong bid support at $3.50 with 50,000 shares, while the ask side shows limited supply above $3.75, this suggests potential upward price pressure. Level 2 quotes also display market maker information, showing which financial institutions are providing liquidity. This is particularly valuable in cannabis stocks, which often experience higher volatility and wider spreads due to institutional hesitancy and regulatory uncertainty. The data typically updates in real-time, though some brokers may impose slight delays. Most professional trading platforms offer Level 2 access, while retail brokers increasingly provide this data free to active traders. Previously, Level 2 access cost $25-50 monthly through services like NASDAQ TotalView. Key components include: - Bid/ask prices and sizes at multiple levels - Market maker identification codes - Order imbalances and market depth - Time and sales data showing actual transactions For cannabis traders, Level 2 quotes prove especially valuable during earnings announcements, regulatory updates, or major industry news when volatility spikes. The ability to see order flow helps identify institutional accumulation or distribution patterns that aren't visible in standard charts. **Disclaimer**: This information is for educational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a qualified financial advisor before making investment decisions.