Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

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.