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Nasdaq Level II
is used when stock trading to provide a list of all buyers
and sellers for each stock traded on the Nasdaq exchange.
Bids (i.e. offers from active buyers) are arranged in descending
price order (highest to lowest) and Asks (the sellers) are
arranged from the lowest to the highest price. NASDAQ Level
II will enable a stock trader to determine the depth of the
market for his chosen stock and can help him to decide whether
to stock trade or not (depth is the 'size' of the market for
a particular stock - how liquid is it?). In order to use a
level II system to any effect, a stock trading player must
get to grips with the relative importance of each participant
and market maker on his screens. A direct access stock trading
system using NASDAQ Level II may make stock trading more fun,
as it may make you feel more 'Wall Street', but to trade the
Grail, it is a bit of an 'overkill'. The Holy Grail Indicator
tells you the price you need to get in at, and if you have
already chosen a liquid stock to trade (which you should have!)
then the depth of the market at the point the trade occurs
isn't really of any interest to you
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