Reading Level 2 In The Stock Market | PB University LITE 21/50

Reading Level 2

I’m Meta Matt, Director of Education and welcome to PB University LITE! This is a 50 Class Trading 101 Series geared towards both new and veteran traders alike! We go over everything from Trading Psychology, Technical Analysis, and Options Trading to Commodity Trading, Forex, and more!! This 50 Class series is not designed be taken in order, it is instead designed for traders to browse and pick which classes interest them. I will include the list of classes at the bottom of this page.

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Level 2 is a type of market data that shows real-time supply and demand information for a particular stock. It displays the bids and asks for the stock, along with the market makers and ECNs providing the liquidity. 

Level 2 data can be accessed through a trading platform and is typically used by active traders and market makers. 

So how do you read Level 2? Well the data is broken down into different components such as bids, asks, market makers, and ECNs. Bids represent the demand for a stock at a certain price level, while asks represent the supply at a certain price level. Market makers are firms that provide liquidity to the market by buying and selling stocks, while ECNs are electronic communication networks that facilitate trading. 

By analyzing Level 2 data, traders can identify potential price levels, support and resistance areas, and potential order imbalances. So why is this important to you as a Trader? Well, Level 2 data provides increased transparency into the market, allowing traders to make more informed trading decisions. 

Traders can use Level 2 data to better time their trades and potentially achieve better execution. By identifying potential order imbalances, traders can manage risk and avoid potential losses. Market makers and institutional traders often use Level 2 data to gain an edge over retail traders, so having access to this data can be a competitive advantage.

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PB University LITE Class List

1) Trading Terminology
2) Stock Market Indices
3) Common, Preferred, and Penny Stocks
4) Diversification of Assets
5) Fundamental Analysis Made Easy
6) Technical Analysis Made Easy
7) Risk Management In The Market
8) Portfolio Management
9) How To Follow Market News
10) Trading Psychology
11) Options Explained
12) The Greeks In Options Trading
13) How To Short Sell Options
14) Covered CALLS
15) Spread Trading
16) Online Brokers for Options Trading
17) Implied Volatility Calculators & Tools
18) Protective PUTS
19) Iron Condors
20) Straddles
21) Reading Level 2
22) Taxes
23) Trading Psychology Techniques
24) The Art Of Trading
25) Becoming A Jedi In The Stock Market
26) Futures Trading Explained
27) Commodity Trading 101
28) Regulatory Environments
29) How To Become A Millionaire
30) $100K In 100 Days
31) Wash Sale Rule
32) Behavioral Finance Part 1
33) Behavioral Finance Part 2
34) 5 Charting Indicators
35) Fair Value Gap
36) Insider Trading and Market Manipulation
37) Stock Chart Types
38) Moving Averages 101
39) Base vs Precious Metals
40) Electricity Trading 101
41) Trading Brokers 101
42) 5 Trading Strategies
43) 85% Trading Rule
44) Are Win Rates A Scam?
45) Futures Trading 101
46) ATR Indicator Strategy With The Greeks
47) MACD Indicator 101
48) Bollinger Bands Indicator 101
49) Wedges, Triangles, Flags and Pennants
50) RSI Divergence 101

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