What are the key features of level 2 market data in the context of cryptocurrency?

1 answers

• Dec 15, 2021 · 3 years ago
  Level 2 market data in the context of cryptocurrency is an essential tool for traders and investors. It provides a more detailed view of the order book compared to level 1 data. With level 2 data, traders can see the depth of the market, including the number of buy and sell orders at different price levels. This information is crucial for understanding market trends, identifying support and resistance levels, and predicting price movements. For example, if there is a large number of buy orders at a specific price level, it indicates strong buying interest, which could lead to a price increase. On the other hand, a high number of sell orders suggests selling pressure, which could result in a price decrease. By analyzing level 2 market data, traders can make more informed trading decisions and potentially increase their profitability.
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