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What’s Level II market data?

We partnered with Nasdaq to give Robinhood Gold members access to Level II market data powered by Nasdaq Totalview.

Level II market data shows multiple bid and ask prices from Nasdaq for any given security so investors can better determine the availability or desire for a security at a certain price. For Nasdaq, bids are functionally equivalent to limit buy orders that other investors have open on the markets. Similarly, asks are functionally equivalent to limit sell orders from other investors. Like any limit order, each bid and ask is represented by the price and quantity of the order.

Level II data is unique because it shows more than just the best bid and best ask on the market. It also shows the full depth of displayed orders on the market, including quantities at the individual bid and ask prices.

Note: Level II market data only includes orders from Nasdaq stock market participants. It doesn’t include data on orders from other stock markets, trading venues, brokers, or Robinhood.

Where can I find Level II market data?

You can find the Level II market data for securities traded on Nasdaq on the security’s detail page. On mobile, tap the arrow next to the current trading price. On web, click Expand underneath the price chart, then click Add Data to add the Order Book and Depth Chart to your view.

How can investors use Level II market data?

Level II data gives investors more information that they can incorporate into their investment decisions and analysis by showing more detail about the bids and asks on the Nasdaq stock market. For example, some traders compare how many shares are on each side of the market, the quantities, and prices as a possible indication of the short-term direction of the price, alongside other indicators.

Investors can use this data in conjunction with other indicators and information and analysis, such as the price chart representing recent trades.

How does the Level II price chart differ from the main price chart?

The main price chart on the security detail page represents the prices of recent trades on that security. The Level II price chart represents a current snapshot of displayed resting limit orders (the different bids and asks) for that security. If one of the open orders on the Level II chart executes, it will become a trade and appear as a data point on the price chart.

For example, suppose an investor places a limit order to buy 10 shares of a given stock at $100. While the order is pending, if the order rests on the Nasdaq stock market, it will appear on the Level II chart as a bid. Later, suppose this Nasdaq order executes—it will then drop off the Level II chart and will appear as a datapoint on the main chart at its sale price.

What’s the bid-ask spread?

The difference between the bid price and the ask price is called the bid-ask spread. The bid price is the highest price that a buyer is willing to pay for a security, and the ask price is the lowest price a seller is willing to accept for a security.

Level II data goes beyond showing just the best bid and best ask on the market by showing the full depth of orders on the market, including aggregated quantities at the individual bids and asks.


Disclosures

Nasdaq Totalview and Robinhood Markets Inc. are unaffiliated entities. Margin trading involves interest charges and greater risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation.

For more information, please see FINRA’s Investor Alert and Robinhood Financial’s Customer Relationship Summary, Margin Disclosure Statement, and Margin Agreement. These disclosures contain important information on Robinhood Financial’s products and services, conflicts of interests, lending policies, interest charges, and the risks associated with margin investing enabled accounts.

Reference No. 20210909-1831219-5634000
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