What Does Level 1 Mean and How to Use it When Trading? (2024)

What Does Level 1 Mean and How to Use it When Trading? (1)

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  • ByBullish Bears
  • Updated April 15, 2024

4 min read

  • Reviewed by Angelica Rieder
  • Fact checked by Lucien Bechard

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What does Level 1 mean when trading? It shows the current number of buyers and sellers in real-time and the last quote price. The bid price is the highest price a buyer is willing to pay. The asking price is the lowest amount a shareholder is willing to sell their shares for—level one constantly updates every stock throughout the trading day.

What Does Level 1 Mean and How to Use it When Trading? (3)

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Table of Contents

  • What Does Level 1 Mean When Trading?
    • Level 1 vs Level 2
    • When Did It Start?
    • Final Thoughts: What Does Level 1 Mean?

What Does Level 1 Mean When Trading?

What does Level 1 mean? This question needs to be answered if you are a beginner. Level one is real-time bid and ask at any time. In other words, pulling up Level 1 gets the bid/ask spread in real time. All basic brokers, like Webull, for example, use Level 1. The bid is the buyers, and the ask is the sellers. This shows the most basic information, in this case, buyers and sellers. You can see who has control of the stock at that moment and the most recent price of an executed trade.

What Does Level 1 Mean and How to Use it When Trading? (4)

Level 1 vs Level 2

Level 2is something most traders are probably the most familiar with. However, what does Level 1 mean? You’ve probably heard traders talk about Level 2. So what’s the difference between the two?

We already know that Level 1 provides the most basic information. The number of buyers, sellers, and the price at which the last trade was made. It doesn’t tell market makers who are trying to buy/sell, the type of order (market or limit), or the order size.

What does Level 2 tell us? You can see the orders market makers put in, the size and price, and who’s making the order. It does give a little more information.

The important thing to remember with Level 2 is that it can and usually is manipulated by computers. In other words, the information you’re seeing is psyching traders out so they get in or out of trades.

That means you shouldn’t just rely on that information to make a trade. What are thechartstelling you?

COURSE
What Does Level 1 Mean and How to Use it When Trading? (5)What Does Level 1 Mean and How to Use it When Trading? (6)What Does Level 1 Mean and How to Use it When Trading? (7)
DESCRIPTIONLearn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action
Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options tradingHow to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading
INCLUDEDDaily watch lists • Trade rooms • Trading scanners • Discord • Live streaming
Day Trading >
Daily watch lists • Trade rooms • Options scanners • Discord • Live streaming
Options >
Futures target levels • Trade rooms • Real time teaching • Discord • Live streaming
Futures >

When Did It Start?

Has the question about what Level 1 means been answered? How did it begin? The stock market has been around for a very long time. The different Levels were used very rarely before the invention of the internet.

Before online trading, you had to call your broker to get these quotes. Now, they’re offered through your platform free of charge.

You can also find these quotes online from websites like Yahoo Finance. Although, having it right on your trading platform is convenient and easy to find.

Final Thoughts: What Does Level 1 Mean?

What Level 1 means is the basic information of how many buyers and sellers there are. If you do use it, couple it with candlesticks and patterns. Candlesticks tell a story, but they paint a bigger picture when grouped.

It would be best if you had that direction to be a successful trader. Buying a stock filled with doji candlesticks in a neutral pattern, like symmetrical triangle patterns, is risky.

You chose the wrong direction, and your trade is bad. You may know how many buyers and sellers there are, but that can change quickly. Use your toolstogether and let them work for you.

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What Does Level 1 Mean and How to Use it When Trading? (16)

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Stock training doesn’t need to be hard. But it sure feels hard when you don’t know where to turn for legitimate knowledge. There are tons of places to learn, but what makes us different?

Well, for starters, we’re just real everyday people who like trade stocks. We’re not gurus portraying a fancy lifestyle of cars and jets and beaches. Can you obtain those things with what we teach you? Sure you can. Is that what motivates us when teaching you how to trade?

Nope. What we really care about is helping you, and seeing you succeed as a trader. We want the everyday person to get the kind of training in the stock market we would have wanted when we started out.

WHY WE’RE DIFFERENT

What else makes us different? When it comes to the stock market, we’ve won, we’ve lost, we’ve lived, and learned. We’ve been through the ups and downs in the market and figured out what really matters. The Charts…Candlesticks = PRICE ACTION! We’ve created a site that passes all this knowledge on to you.

We don’t charge you an arm and a leg for the stock training we give you. We charge a modest amount that goes towards running our day-to-day operations and paying for our invaluable team moderators that are passionate about teaching YOU!

That’s about it. We could charge more, but we have a pay it forward, give back mentality. It’s not about the money. The best and most important thing for us is YOU. We want to feel good about what we do, and the results and reviews speak for themselves.

Those emails we get, the feedback, the success we see. That is what our educational trading community is all about. We hold no secrets back. Our trading edge is your trading edge.

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We don’t care what your motivation is to get training in the stock market. If it’s money and wealth for material things, money to travel and build memories, or paying for your child’s education, it’s all good. We know that you’ll walk away from a stronger, more confident, and street-wise trader.

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TRADING STOCKS IN THE BULLISH BEARS COMMUNITY

Yes, we work hard every day to teach day trading, swing trading, options futures, scalping, and all that fun trading stuff. But we also like to teach you what’s beneath the Foundation of the stock market.

Tell you the TRUTH about how the market works. The importance of controlling your emotions and having a proper mindset when trading. We’re really passionate about teaching you this stuff!

Money isn’t our #1 priority in life. YOU are. Our members come first. Making sure you get comfortable with trading is our priority.

We have members that come from all walks of life and from all over the world. We love the diversity of people, just like we like diversity in trading styles. It creates an environment much like a university or college.

TRADING ROOMS AND LIVE STOCK TRAINING

Each day our team does live streaming where we focus on real-time group mentoring, coaching, and stock training. We teach day trading stocks, options or futures, as well as swing trading. Our live streams are a great way to learn in a real-world environment, without the pressure and noise of trying to do it all yourself or listening to “Talking Heads” on social media or tv.

We will help to challenge your ideas, skills, and perceptions of the stock market. You will learn and grow as a trader. Every day people join our community and we welcome them with open arms. We are much more than just a place to learn how to trade stocks.

Feel free to ask questions of other members of our trading community. The Bullish Bears are a very helpful crew. We realize that everyone was once a new trader and needs help along the way on their trading journey and that’s what we’re here for. To give you a hand up along your trading journey.

Click Hereto try our trading community free for 7 days.

FREE ONLINE TRADING COURSES

If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.

We are opposed to charging ridiculous amounts to access experience and quality information.

That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too!

On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews.

We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.

Our content is packed with the essential knowledge that’s needed to help you to become a successful trader.

It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.

Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person!

STOCK TRADING COURSES FOR BEGINNERS

The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.

If you’re a beginner, intermediate level, or looking for expert trading knowledge…we’ve got you covered.

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Just choose the course level that you’re most interested in and get started on the right path now. Become a leader, not a follower. When you’re ready you can join our chat rooms and access our Next Level training library. No rush. We’re here to help.

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What Does Level 1 Mean and How to Use it When Trading? (2024)
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