Level I Quote
What It Is:
A level I quote is the current best bid and offer for a security that trades on the Nasdaq or over-the-counter markets.
How It Works/Example:
Level I quotes do not disclose which market makers are bidding for or offering the security, whether there are limit orders on the security, or the size of potential trades at a particular price. In other words, the viewer does not have access to view the depth of the "order book" or who has an interest in a security and at what price.
Why It Matters:
Level I quotes are limited, but they do give traders and investors a basic idea of how a security is doing. To get more information, traders need access to Level II and Level III quotes.
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Cached on May 24, 2012, 10:18 am