What’s Level II Market Data? | Robinhood

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.

This data shows multiple bid and ask prices from Nasdaq for any given security so investors can better determine the availability of and interest in 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 the 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 Level II Market Data for securities traded on Nasdaq within your Robinhood account:

  1. Go to a security’s detail page.
  2. In the app, select the arrow next to the current trading price. On the web, select Advanced (double-arrow icon).
  3. On the web, under Level II Market Data, select +Add to add Order Book and Depth Chart.
How can investors use Level II Market Data?

This 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 volumes, and prices as possible indicators of the short-term direction of the price, alongside other indicators.

Investors can use this data in conjunction with other technical indicators 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's detail page represents the prices of recent trades on that security. The Level II price chart represents a current snapshot of the resting limit orders (the different bids and asks) for that security. If one of the open orders on the Level II chart executes, it'll 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'll appear on the Level II chart as a bid. Later, suppose this Nasdaq order executes—it'll 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, review 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.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Review a list of RHC licenses for more information.The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Review a list of our licenses for more information. Credit card products are offered by Robinhood Credit, Inc. ("RCT") (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

RHF, RHY, RHC, RCT, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC isn’t a member of FINRA and accounts are not FDIC insured or protected by SIPC.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

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