Prop Firm Genius
All Terms

Level 2 Data

General

Description

More detailed market data that includes the order book, showing depth of market (DOM) with pending buy/sell orders at various price levels.

Also known as:

Depth Of MarketOrder Book

Why It Matters

Level 2 data helps traders analyze order flow and liquidity, making it easier to gauge support/resistance levels and anticipate short-term price movements.

Example

A trader sees large buy orders stacked at 4,495.00 in the DOM, indicating strong support. They decide to enter a long trade just above that level.