Level III
More advanced stock traders may be more interested in learning about level III (3) stock investing. Not as many people participate in level III online trading. It could be that they are afraid of the risk or that they just don’t understand how level III stock trading works. If you are a highly advanced online stock trader and you feel very confident in your abilities, you may decide that you want to look into Level III online stock trading.
There is a lot of money to be made at Level III online stock trading, particularly when you are knowledgeable and know what you are doing. So what is involved with Level III and what type of access do you have that the other 2 levels do not?
What is Level III Stock Trading?
There are three levels of online stock trading. First is level I which is the basic trading that most traders use. With Level I you get volume, bid, ask, etc. Level II is one step up from this and it allows you a bit more. Level II shows everyone's limit orders, and if read properly is a predictor of the market, but subject to spoofing.
Stock investing, Level III is a trading service that consists of everything you will find in Level II stock trading but with some extras. For example, you have the ability to enter quotes, execute orders and send information regarding your transactions on the market. This service is typically restricted to NASD member firms that function as registered market makers. This is the absolute fastest way to make a trade. However, you should be warned that it is not for everyone.
With Level III you can actually change the bid and ask, on top of everything else that Levels I and II get. It doesn't take much of an imagination to see that you can make a lot of money with that type of power. For example, if you put a stop loss order in, someone with Level III can move the price down, force you to sell low, (so they can buy) and bring the price back up. Keep in mind that they can only buy and sell when someone sells and buys from them. So it's not just a numbers game, it's a psychology game too.
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Quotes
Online trading is quick and easy, stock investing takes time.
The interest in online trading is even more intense now.
Online Trading is still in its infancy so become involved now.
Online trading is becoming a very popular alternative to more traditional methods of stock investing.
Online Trading e is taking on the world with lightning speed.
Another trap of online trading is high frequency of trades.
But stock investing is not without its risks
Stock investing is not something you should enter into lightly.
Of course stock investing is not for everyone.
Online trading is a hard job where success comes with a price.
