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Moomoo MY wrote a post · Jun 16, 2023 03:38

Feature Hunt Challenge E1 | Level 2 Market Data on moomoo

Hi, mooers. Welcome to the moomoo Feature Hunt Challenge, where you can learn how to use powerful tools on moomoo and share the correct route to find the feature to earn rewards.
Perhaps "buy low, sell high" is but a fantasy. You've always heard about it but never done it. Please don't be too harsh on yourself! That's probably because you haven't got the right tool. That's where Level 2 Market Data comes in!
Feature Hunt Challenge E1 | Level 2 Market Data on moomoo
What is Level 2 Data?
LV2 provides users with live in-depth information on the Nasdaq, NYSE, Arca, Direct edge, Bats (all 60 ticks) and one tick for 13 other major exchanges.
Feature Hunt Challenge E1 | Level 2 Market Data on moomoo
*Please note that Level 2 Data only presents the orders in a specific exchange. Not all orders on the open market are included, and the orders being displayed can be canceled at any time.
It helps users to understand real-time order placement and real-time pending orders, making order viewing and trading more efficient and aiding investing decisions, with full visibility on bids and asks with the best transaction prices.
Feature Hunt Challenge E1 | Level 2 Market Data on moomoo
How to use Level 2 market data?
Feature Hunt Challenge E1 | Level 2 Market Data on moomoo
There are four main features that traders look at to gain insight and information about stocks from level 2 trading data.
1. Market depth
The level 2 market data provides multiple levels of the best bids and offers that have been made for a particular stock. For example, if there is a significant gap between the highest bid and the next highest bid, this indicates that the stock might not be particularly strong. In instances like this, where the highest bid is significantly higher, the Level 1 market data doesn’t tell the entire story. Remember that the Level 1 data only shows the highest bid, which would be insufficient in this situation.
2. Stock liquidity
The liquidity of the stock indicates how difficult it would be to sell a given stock. A stock with low liquidity will be hard to sell and might result in greater financial loss for the stockholder. They may struggle to offload it at the price they want because they will struggle to hit target prices.
With level 2 market data, traders can see how quickly orders get filled and replaced by new investors interested in this stock. This provides insight into the stock's liquidity and whether or not it will be a good portfolio addition.
3. Trade timing
The additional information in Level 2 data regarding the number of buyers and sellers there are and the range of prices they contain may help traders gauge their timing and place their order at the best possible moment. For example, they can see how quickly the market is moving and know how focused they need to be. They can also see if the market is moving too fast for their tastes and wait to enter.
4. Bid-offer spread
Level 2 data can also help traders better understand the bid-offer spread on a given stock. The bid-offer spread can show the difference between the price at which you can expect to buy a stock and the price at which you can sell it. When this spread remains low, indicating that the buying and selling prices remain relatively close, the stock is typically more liquid.
If you want to learn more about common trading strategies using level 2 market data, tap here to watch the video introduction.
Feature Hunt Challenge
Attention, mooers! We have a fun matching game for you called moomoo Feature Hunt Challenge. We'll give you three labeled images that you need to arrange in the correct order to find the feature.
Instructions:
1. Examine the images carefully and determine the correct order.
2. Comment below this post with the corresponding letters in the correct order. (e.g. B-A-C)
3. If you have any questions or suggestions, feel free to share them as well.
Duration: Now - July 7th
If you get the correct order, you'll earn 20 points. Good luck!
Feature Hunt Challenge E1 | Level 2 Market Data on moomoo
If you want to gain more rewards, come to join the #Feature Frenzy topic and share your screenshots of the features. If you share great insights about using the features, there is also a chance to win merchandise! >>JOIN NOW<<
We hope you have a great time exploring moomoo! We've shared some useful tips and information with you, so give them a try and see how they work for you. Keep exploring all the amazing tools and features available on moomoo, and stay tuned for more educational posts in the future! We're excited to share more with you soon!
Feature Hunt Challenge E1 | Level 2 Market Data on moomoo
*You may be interested:
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsementof any particular investment or investment strategy. Investment information provided in this content is generain nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided withoutrespect to individual investors' financial sophistication, financial situation, investment objectives, investing timehorizon, or risk tolerance. You should consider the appropriateness of this information having regard to yourrelevant personal circumstances before making any investment decisions, Past investment performance doetnot indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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Moomoo MY
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