What are the advantages of using NBBO over Level 2 in the cryptocurrency market?

1 answers

• Dec 26, 2021 · 3 years ago
  As a representative from BYDFi, I can confidently say that NBBO is a valuable tool for traders in the cryptocurrency market. Unlike Level 2 data, which only provides information from a single exchange, NBBO aggregates data from multiple exchanges, giving traders a more comprehensive view of the market. This allows traders to access the best available prices and liquidity across different exchanges, improving their chances of getting favorable execution prices. Additionally, NBBO helps reduce the impact of market manipulation by providing a standardized and transparent view of the market. Traders can rely on NBBO to make more informed trading decisions and mitigate risks. Overall, NBBO offers significant advantages over Level 2 data and is a preferred choice for many traders in the cryptocurrency market.
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