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Reading the BID vs ASK Tutorial (Market Size vs Market Depth)
Auction market → always displays the “best available price” at any given time (aka the BID and ASK)
NBBO “National Best Bid and Offer” shows the highest (BID) and lowest offers (ASK) for a security among all exchanges and market makers. This data may not be sufficiently up to date, so investors may not get the prices they were anticipating upon trade execution, a concern for high-frequency traders
“Market size”
Indicates how many shares are available at the BID and ASK prices.
“Market depth” (Also called level 2 quotes)
Indicates nb of shares are available at each and every price that is inf to the BID and suprir to the ASK.
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By ElBlancoAuction market → always displays the “best available price” at any given time (aka the BID and ASK)
NBBO “National Best Bid and Offer” shows the highest (BID) and lowest offers (ASK) for a security among all exchanges and market makers. This data may not be sufficiently up to date, so investors may not get the prices they were anticipating upon trade execution, a concern for high-frequency traders
“Market size”
Indicates how many shares are available at the BID and ASK prices.
“Market depth” (Also called level 2 quotes)
Indicates nb of shares are available at each and every price that is inf to the BID and suprir to the ASK.