What is a Level 3 trading account?
Level 3 trading is reserved for members of the National Association of Securities Dealers (NASD), which is composed of financial institutions that act as stock market broker-dealers, also known as market makers. NASD is also now known as Financial Industry Regulatory Authority (FINRA).Level 3 PlatformLevel 3 is a trading software platform for market makers. It gives these dealers access to information about competing market makers and their bid and ask prices that shape market activity.QuotesStock quotes are constantly changing during a market session. A lot of websites publish delayed quotes. Level 1 and 2 platforms offer real-time quotes for investors while Level 3 offers real-time quotes plus deeper information, such as order flow.FunctionLevel 3 traders own inventories of a wide range of stock. Their job is to trade as many shares as possible and profit from the spread, which is the difference between bid and ask prices. Level 3 market makers enter bid and ask quotes, and execute o
