In trading, having access to the right information at the right time could make a huge difference. This guide breaks down two (2) fundamental market data levels (L1 and L2), so you can understand exactly what information you're seeing and how to use it.
Part 1: What is L1 Data?
L1 (Level 1) data displays the most essential real-time market information. Think of it as a basic market snapshot that shows you the core prices and activity at this exact moment (the present).
L1 data includes:
Best Bid Price: The highest price a buyer is currently willing to pay for an instrument.
>> Example: If the best bid is $100, buyers are willing to purchase at this price.
Best Ask Price: The lowest price a seller is currently willing to accept for an instrument.
>> Example: If the best ask is $101, sellers will sell at this price.
Note: The difference between bid and ask price is called the "spread".
Last Traded Price: The exact price at which the most recent trade occurred.
>> Example: The last trade happened at $100.50.
>>> Purpose: Helps you see the market's current activity.
Trade Volume: The total number of units traded during a specific time period.
>> Example: 1,000,000 units traded in the last hour.
>>> Purpose: Shows how active the market is.
Who should use L1 data?
L1 data is perfect for beginners and swing traders because it provides all the essential information needed to make basic trading decisions without overwhelming complexity.
Part 2: What is L2 data?
L2 (Level 2) data goes a bit deeper. It shows you the complete order book, not just the best bid and ask prices, but all pending buy and sell orders at every price level.
L2 data includes everything in L1, PLUS:
Full Order Book (Market Depth): All buy and sell orders stacked at different price levels.
>> Example: You see 500 units at $99.99, 1,000 units at $99.98, 2,000 units at $99.97 etc.
>>> Purpose: Shows you where traders expect the price to go.
Multiple Bid and Ask Levels: Not just the best bid/ask price, but the next 5, 10 or 20 price levels.
>> Example: You see buyers lined up at $100, $99.99, $99.98 etc.
>>> Purpose: Helps you identify support and resistance zones.
Order Size at Each Level: Exactly how many units are available at each price.
>> Example: 10,000 units waiting to sell at $102.
>>> Purpose: Shows you where large orders are "sitting", which can basically indicate price support or resistance.
Market Flow Insight: You can see if buying or selling pressure is increasing or decreasing.
>> Example: If orders at higher prices are growing, buyers may be aggressive.
>>> Purpose: Helps traders predict potential price movements.
Who should use L2 data?
L2 data could be valuable for:
Active day traders who need detailed order information.
Traders refining strategies based on market structure.
Anyone wanting to understand larger market movements before they happen.
Part 3: L1 vs L2 Quick Comparison
Feature | L1 Data | L2 Data |
Best Bid & Ask | ✓ Yes | ✓ Yes (+ additional levels) |
Last Traded Price | ✓ Yes | ✓ Yes |
Volume | ✓ Yes | ✓ Yes |
Full Order Book | ✗ No | ✓ Yes |
Multiple Price Levels | ✗ No | ✓ Yes |
Order Sizes at Each Level | ✗ No | ✓ Yes |
Complexity | Low | Higher |
Best For | Beginners, long-term traders | Active, day traders |
Part 4: How to Access the Depth of Market (L2 Data) on Fintevo
Both L1 and L2 data are available on our platform. You can view by following the below steps:
From your main dashboard, click the layout/grid icon near the top-right corner of the toolbar
Select "Depth of Market" from the main menu
The Depth of Market (DOM) panel will appear on your screen
You'll see columns for:
Bids: Buy orders at each price level
Price: The price points
Asks: Sell orders at each price level
During market hours, this panel fills with real-time data showing:
Order sizes at each price level
Market depth and liquidity
Support and resistance zones
Note: During market closed hours, the DOM shows 0.00. When markets are open, you'll see active buy and sell orders across multiple price levels.
Part 5: L2 Data in Action
When you open the Depth of Market (DOM) panel during trading hours, you'll see a table with three (3) main columns:
Left: Bid orders (how many contracts traders want to buy at each price)
Center: Price levels (the actual prices)
Right: Ask orders (how many contracts traders want to sell at each price)
This gives you the complete picture of market supply and demand. Something L1 data doesn't provide.