LEVEL II OR MARKET DEPTH
Somebody asked me today if I trade the FDAX with or without the "book". I told him I did but that my broker doesnot give this book but the electronical equivalent of the book being the so called Level II or Market depth.
A very good article about the famous NASDAQ Level II can be found here. and how it is used and played with (the tricks of the bigger players) here.
In the picture you can see the Market Depth window (provided by Interactivebrokers) for the FDAX. It displays the alternative bids and offers away from the inside quote being Level I being known as the spread. You see it at the Quote Panel.
The main differences between the NASDAQ and the FDAX level II are:
- The greeter depth of the NASDAQ quotes, it displays far more bids and offers.
- The NASDAQ Level II is built of orders of the various marketplayers so you know who is offering or bidding and at which amount at what prices. This is an important difference between the NASDAQ and most of all other markets Level II quotes, making the NASDAQ highly lucent.
I would like to know who is playing around on the FDAX on a daily basis. Oh sure yes.
10:07:47 PM 
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