Level 2 Market data contains full depth of the market by listing the buy and sell orders. This reflects the strength of the market in terms of buyers and sellers. For each side volumes are grouped in consideration of price levels. Online review of Level-2 data help monitor average spread, and provides transparency to the market by viewing all orders in the market and by virtue of entering an order through their TWS and seeing it passing through the market depth level which the order has to supercede in consideration of its price.
