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Level 2 (depth of market) — definition & meaning

A view of the buy and sell orders queued at different prices.

Level 2, or depth of market, shows the resting buy and sell orders stacked at prices around the current market, revealing where liquidity sits.

It can hint at where price may find support or resistance from large orders, though displayed orders can be pulled or be misleading. It is more useful in centralised markets like stocks and futures than in over-the-counter forex.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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