SG Users' Guide - Manage Your Account
How to Use Level 2 market data for SG stocks？
Trading is all about capturing signals and attempting to make accurate judgments in a constantly changing market. Access to reliable and more in-depth market data can make a difference.
With Level 2 data, you can stay on top of the game. This feature displays real-time buy and sell orders for a given asset, helping you grasp the ever-changing dynamics of supply and demand and make more informed trading decisions.
How to find Level 2 market data on moomoo?
Tap on an SG stock > Chart
Scroll down to view real-time bids and asks and its order book.
How to read Level 2 data?
A stock's quotes are divided into two sections:
Best Bid and Offer (BBO), also known as Level 1 data, which displays the best bid and ask prices and their sizes.
On the other hand, Order Book, also known as Level 2 data, includes everything in Level 1 data and provides information about outstanding orders.
The red-colored area on the left side indicates the buy orders, while the green-colored one on the right side represents the sell orders.
"SGX" refers to the exchange name.
The numbers in the middle indicate the bid/ask prices. The buy orders are sorted in descending order of price, and the sell orders are sorted in ascending order of price.
The numbers on the right side represent the quantity of shares waiting to be traded at that price level. If multiple orders have the same price, their sizes will be combined.
There are three customization options available for Level 2 data:
The "house icon" allows users to switch between board lots or odd lots.
The "settings" icon in the middle enables users to customize the view. They can choose to color-code the price levels, show or hide bars that visualize order size, combine orders with the same price levels, and show or hide the chart that visualizes the strength of buyers and sellers.
The "number icon" enables users to choose how many price levels to display, with up to 40 rows supported.
It is important to note that Level 2 data only displays outstanding orders and does not reflect executed trades. Once an order is filled, it will disappear from the Level 2 data.
How to use Level 2 data to capture potential trading opportunities?
1. Use large buy orders to identify support levels and help potential entry points.
Technical traders often prefer to enter the market when the stock price reaches a support level. But how can we identify a support level? For example, if there is a large buy order for 30.9k shares at a price of S$8.010 for AIY, this could be viewed as a reasonable support level because the stock price would have to drop below S$8.010 to fill that large buy order.
2. Use buy orders to identify support levels and construct stop loss strategies.
Experienced investors often set stop loss orders after buying stocks to manage risks. To determine where to set a stop loss order, it's crucial to identify a suitable support level. If the stock price falls below a strong support level, it indicates significant selling pressure and reduces the likelihood of a rebound. As we saw in the previous example, large buy orders can serve as short-term support levels and can be used to set a stop loss order.
3. Use large sell orders to identify potential resistance levels and construct profit-taking strategies.
Contrary to large buy orders, large sell orders can indicate potential resistance to short-term price increases. It is possible for traders to use this information to potentially sell the stock before the large sell orders are executed in an attempt to take profit at or below this resistance.
Level 2 data can provide valuable market information for short-term trading decisions related to entry, stop loss, and profit-taking. It's an easy-to-use and practical tool. However, it's important to conduct comprehensive analysis and evaluate various factors before making any trading decisions.
*In Singapore, clients who have a valid Moomoo SG universal account can claim SG Securities LV2 advanced market data quotes. T&Cs apply, to learn more, visit LV2 Quote for SG stocks , 40-Level In-Depth Order Book Data -- December 2023-moomoo Help Center.
Limit and stop orders do not guarantee that an execution will occur because the price may never reach your limit or stop price, or there are other orders ahead of yours.