That's right - according to Level 2 expert Dominic Connolly, trading without Level 2 is like trying to drive blindfold.
Level 2 provides a view of the full order book helping you to trade inside the spread and improve your timing.
Understanding Level 2 will also give you the necessary skills to use Direct Market Access (DMA) via your broker to trade on the other side of the spread.
ShareScope Level 2 is available to ALL members. ShareScope Pro customers receive Level 2 FREE as part of their subscription; ShareScope Gold and Plus members can add Level 2 for just £16 per month (or £170 per year).
To help you maximise the benefits of Level 2, we have teamed up with Dominic Connolly to present an outstanding 2½ hour audio-visual tutorial which we believe is the best guide to Level 2 available to private and traders.
"Very impressive - ShareScope makes Level 2 really easy to read and interpret"
- Dominic Connolly, Author The UK Trader's Bible
ShareScope's superb Level 2 includes the following features:
- Open multiple Level 2 windows (Plus & Pro)
- Fully customisable screen - use your preferred colours and fonts
- Trade list showing price, time, volume and type
- Full and summary order book views with volume at each price level
- Cumulative order volume graph showing potential support/resistance levels
- Intraday price chart
- Change share simply by typing its name
- One-click access to Company News and Directors' Dealings
How Level 2 can help your trading
Understanding Level 2 will help you spot trading opportunities and improve the timing of your trades.
Dominic Connolly, author of The UK Traders Bible says "to trade without Level 2 is like trying to drive blindfold".
When you deal via your stockbroker, you buy at the offer and sell at the bid (that is, you buy at the higher price and sell at the lower price). The member firms will generally buy at the bid and sell at the offer. That's one of the key ways they make money. Some brokers allow private investors to do the same through Direct Market Access (DMA). Becoming familiar with level 2 is the first step to being able to use DMA.
However, just having access to Level 2 and an understanding of the price formation process, can help you to time your trades better or get a better price from your broker (dealing inside the spread).
- Gain an insight into the price formation process
- Gauge likely short-term price movement
- Spot support and resistance levels
- Take more profit from your trades
- Learn new short-term trading techniques
- Prepare for Direct Market Access
By watching the prices and volumes of shares available on the bid/offer (market depth), by seeing how some market participants try to manipulate the order book, you can gain an insight into the price formation process.
As you watch buy and sell orders being filled, and new orders being added, you can see the pressures on the bid and offer and where order volume is creating support and resistance. With practice, you'll learn how to improve the timing (profitability) of your own trades. Even for longer term investors, Level 2 can help you make significant savings.
For less liquid stocks, level 2 allows traders to see which market makers are showing the most interest in a security, to identify the patterns for each market maker, and to see how liquid a stock is at any point in time.
You'll also be able to track price action during the opening and closing auctions. This can be a great time to trade at or near the day's high or low. Your broker may allow you to trade during this period.
For short-term traders, there are a host of trading strategies that go with Level 2 access. We recommend "The UK Trader's Bible" by Dominic Connolly.
Learning how the order book and auction process works will give you the necessary skills for Direct Market Access (DMA) - available from certain brokers. DMA enables you to participate directly with the market - entering your own buy and sell orders (i.e. you can buy at the bid and sell at the offer).
Add Level 2 today
Level 2 is an UPGRADE to ShareScope. If you are not yet a member, please click here. Remember, Level 2 is included FREE in ShareScope Pro.
|Annual||Add to a membership package for £170 annually
Total payable today £170
Add to a membership package for £16 per month
Total payable today £16
|Using Level 2 to Improve Your Trading
With Dominic Connolly
|Only £19.95 when you join ShareScope (usually £29.95)
For a guide through the key features of ShareScope's new Level 2 system, take a look at our FREE audio-visual "Introduction to Level 2 Video" presentation.
Click here to view the video.