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Level 1

Level 1 is a data feed display used for stock trading that shows the national best bid and offer or the best bid-offer volume quotes in real-time (NBBO). Although active traders prefer to use more detailed and higher-level quotations, such as order book and market depth information, level 1 quotes provide basic information that, for the most part, is sufficient for most investors. There are three levels of quotes in the American stock market: Level 1, Level 2, and Level 3. An investor can examine these quotes to understand where the market is consolidating as well as how a particular stock is performing over time.


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