Intraday trading
What is Level 2 data (Order Book Depth) and how do I read buyer/seller imbalances?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Level 2 data shows real-time bid/ask orders at multiple price tiers from various market makers and ECNs, revealing depth beyond the best bid/offer.
How it works
Traders watch size stacked on bid versus ask to gauge short-term buying or selling pressure, though displayed size can vanish quickly (pulled orders).
An example
If 50,000 shares sit on the bid at $10.00 versus 5,000 on the ask at $10.02, it may suggest more buying interest at that level.
Risk & limitations
Level 2 size is not firm and can be manipulated or withdrawn instantly; never rely on it alone to size a position.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.