What Is Day Trading Market Data?

by Manny Backus, Day Trading Strategy Expert

The day trading market data encompasses stock quotes, sales, updated stock charts, historical data such as new highs and lows, volume (amount of shares traded), and company news.
This information is very important to day traders to allow them to watch not only their particular stocks, but the market as a whole as well.

In addition, market data may include what the bid price is for a particular stock, the total number of shares that are available for that stock, the price asked for the stock and the number of shares available at said price, what the stock’s last trade price was, and how many shares were traded.  This is known as Level I market data.

Level II market data, on the other hand, enables you to view, in depth, the various amounts of shares bid for or offered at various prices. This allows you to make better decisions on price movements.  For example, NASADQ Level II quotes show a list of bids and asking prices in rank order.  Used primarily for NASDAQ stocks, it has the ability to view Level II quotes which also gives you insight as to which stock is showing the most interest by traders. 

Each of these market data is available to day traders.  Level II market data tends to be more expensive than Level I market data, due to the additional information provided.  In addition, depending upon the type of market the day trader is utilizing will determine which level of market data is used.

Incorporated in the market data are trading software which is necessary for the day trader to use to determine how a particular stock will chart.  Technical analysis, charting and real time data are all components of day trading market data.  This is why a market feed is crucial to a day trader.  Without it, current pricing and real time information would not be available and thus the day trading would literally be working blind.

When you read that the market data comes from whatever exchange is offering the market, you can use NASDAQ Level II as an example.  All information on NASDAQ trading would come from them in real time, as well as any other information necessary to make a transaction online or via phone.

Whether you read the Wall Street Journal, Barron’s, listen to corporate reports, or watch daily reports on TV – all of this information in combination with the resources and tools already provided by brokers can help you make a knowledgeable decision on whatever stock or currency trade you are making that day.

A recent report on the housing crisis has played havoc with the stock market.  This is the kind of information that you will see online as you chart your stock.  So too, most brokers offer real time news as it happens so that you can ascertain when to buy and sell.  Day trading is all about timing, and having day trading market data can make all the difference in whether you profit on a particular stock or not.

While day trading does have its good days and bad days, having the day trading market data can make a difference, even as it pertains to one transaction.  Whether you trade one stock or multiple stocks, it is clear that Levels I and II are a necessary component for day traders.  It should also be noted that Level II data is a bit more expensive than Level I simply because it offers more information.  When choosing a broker and deciding on what type of stocks you will be trading, he or she will be able to provide you with the necessary information you need, albeit Level I or II, so that you can be assured you have all of the pieces in place to begin day trading.

Join a daytrading club with a proven track record and you could start making money as early as tomorrow morning. Sign up below to get more information:

First Name:
Email:

3435 Ocean Park Blvd. #107 PMB 334, Santa Monica, CA 90405
Phone 800-670-8332

Wealthpire Inc. All Rights Reserved.
Privacy Policy | Terms of Use