What are the benefits of using order book level 2 in cryptocurrency trading?

3 answers

• Jan 13, 2022 · 3 years ago
  Order book level 2 provides traders with a deeper insight into the market depth of a cryptocurrency. Unlike order book level 1, which only displays the best bid and ask prices, level 2 shows the full range of bids and asks at different price levels. This additional information allows traders to gauge the strength of the current market and make more informed trading decisions.
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• Jan 13, 2022 · 3 years ago
  Using order book level 2 in cryptocurrency trading is like having x-ray vision for the market. It reveals the hidden layers of buy and sell orders beyond what level 1 shows. With level 2, traders can see the order sizes and prices at various levels, enabling them to identify support and resistance levels, detect market manipulation, and anticipate potential price movements. It's a powerful tool for those who want to dive deeper into the market dynamics.
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• Jan 13, 2022 · 3 years ago
  Order book level 2 is a must-have for serious cryptocurrency traders. It provides a comprehensive view of the market depth, allowing traders to see the liquidity and demand at different price levels. This information can help traders identify potential entry and exit points, spot large buy or sell walls, and understand the overall market sentiment. By using order book level 2, traders can gain a competitive edge and make more informed trading decisions. At BYDFi, we highly recommend utilizing order book level 2 to enhance your trading strategies.
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