What is the Level 2?

Stock Market Terms explained as simple as possible

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Level 2 is a subscription service that offers market depth with bid and ask prices and sizes.

Level 2 shows you bid and ask prices and order volume (number of shares) for each price level.

Bid price information. The number behind the price is the shortened number of shares at that price. 1 = 100 shares. The description before in front of the price is the originating market maker.
Ask price information. The number behind the price is the shortened number of shares at that price. 1 = 100 shares. The description before in front of the price is the originating market maker.
Time and sales window. Shows the orders that went through and at which price. The number behind the price is the shortened number of shares at that price. 1 = 100 shares.

Level 2 can be used to spot potential support and resistance zones and thus reversals of the price.

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