6 votes
Accepted

What are the risks of placing limit orders on illiquid securities without knowing the Level 2 quotes?

A buy limit order is an order to purchase a security at or below a specified price. That guarantees that you pay no more than your limit price. The only downside risk that you face is that your ...
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4 votes
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Level 2 manipulation: types and how to spot

In general, "painting the tape" or "spoofing" is illegal, and any broker that allows their client to submit such orders is subject to penalties. The client themselves is also subject to penalties, ...
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3 votes
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Why doesn't every successful trade appear on the Level 2 order book?

There can be plenty of non-posted liquidity. So OTC orders that didn't match posted limit orders can occur, but so can trades between the posted spreads that just happened faster than the visual ...
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1 vote
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Level 2: What do the different order types on LSE represent?

An automatic trade (AT) is a normal on-exchange trade, created during regular trading by the matching engine from order(s) in the order book. An ordinary (O) trade is a normal off-exchange trade, ...
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  • 417
1 vote

Level 2 Ask Price

I don't know about the Pink Sheets but on major exchanges, hiiden orders offer traders the ability to disguise the size of their order, displaying only the order size that they want. Iceberg Order: ...
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1 vote

What exactly are Level 2 quotes, and how are they related to the limit order book and "market depth"?

Since no one has answered, I will provide an incomplete answer based on what I have learned since the question was asked. When someone says "Level 2 quotes", do they mean (1), (2), or (3)? ...
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1 vote
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Do level 2 quotes help a non day trader?

Unless you are trading illiquid securities or very large quantities, level 2 quotes are not useful. Particularly if you will be using limit orders.
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