Comments on: What’s the Difference Between Level 1 and Level 2 Market Data? https://www.financial-expert.co.uk/whats-the-difference-between-level-1-and-level-2-market-data/ Invest in yourself Sun, 13 Feb 2022 13:10:55 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Simon Oates https://www.financial-expert.co.uk/whats-the-difference-between-level-1-and-level-2-market-data/#comment-3582 Sat, 23 Jan 2021 07:19:51 +0000 https://www.financial-expert.co.uk/?p=3934#comment-3582 In reply to Kevin Grant.

Hi Kevin,

The answer is it depends. It depends on what data inputs your algorithm will use.

If your trading robot is using other inputs, such as fundamental factors, news-based inputs or other information, then level 2 data simply won’t make a difference. In these cases, your algorithm would be instructing trades at the live market price regardless of information about the depth of the order book, making level 2 data a superfluous piece of information.

]]> By: Kevin Grant https://www.financial-expert.co.uk/whats-the-difference-between-level-1-and-level-2-market-data/#comment-3579 Fri, 22 Jan 2021 22:17:18 +0000 https://www.financial-expert.co.uk/?p=3934#comment-3579 This was an incredible help.
Literally took me from choosing dark in the dark to making an informed decision.

I’ll be looking at the emini/micros futures contracts.
I, however, am in the process of studying python automation which may lead to algorithmic trading. Would Level 1 still remain feasible If I’m trading a small number of contracts as opposed to what institutional investors are trading from an automated perspective?

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