What's up Everybody? All right? So today we're going to be talking about day trading terminology and specifically, we're going to be talking about what is the bid, the ask, the spread, and what is Level One data. In the next video, we're going to be talking about Level Two data, market makers, Ecn routing, dark poool routing, and I'm going to show you some live examples of me trading using Level Two data. But first, let's jump in here and make sure you guys fully understand Level One data. All right.

So to today's day trading terminology: class is on Level One data plus Bid and ask and spread. So the bid price. This is really pretty simple, right? This is the price the Traders are currently bidding a stock at. Every stock has a bid, so let's say Traders for example, are bidding at $10 Traders can put an order to buy the stock at $10 That's the bid price and if you're buying at the bid price, you've got to wait for a seller to come come sell you shares at that price that you're buying at now.

Alternatively, if you want to buy a stock, you can also buy from a seller who's sitting at the ask price, right? Every stock has a bid and every stock has an ask. The ask price is the price that Traders are currently selling the stock at. So if you want to sell the stock, you could go ahead and put an order at the ask price. But when you put an order at the ask price, that is the best price and therefore you need to wait for a buyer to come buy those shares from you.

So let's say you've got an Ask price of 10:02 Well now you have a spread and the spread is the difference between the bid and the Ask and in this case we have a 2cent spread. So if you want to buy a stock, you can buy either by sitting on the bid or from buying a seller on the ask. And if you want to sell a stock, you can either sell by sitting on the ask or by selling to a buyer who's sitting on the bid. So trans transactions occur on both sides of the bid and the ask and sometimes they occur in the middle in between the spread.

Now when we look at Level One data, this is what most Traders see when they uh Place orders. Whether they're placing an order on their iPhone or uh, you know they're just logging into E Trade to place a quick order. Most Traders just look at the level One. This is the first depth of the market and Level One data shows us simply the best bid price and the best ask price price.

And so by default we'll end up seeing the spread and in this case, the level one is 230 by 231, right? So we have a 1-cent spread. Level One data will also show us things like the total volume on the day, the percentage change, and that sort of thing. All right. So Level one and Level Two data.

they really are, Uh, very different. Level one is the first depth of the market and level two is when we get deeper and we start seeing, uh, more more of the context. All right now as we transition here, uh, in the next class, we're going to be talking about Level two data and how reading level two data can help improve your accuracy as a Trader There's a lot of stuff below this top section that you need to know if you're actively day trading. So where level one Traders only see this? Level two Traders can see all of this extra information and this allows us to make quick decisions.

We can draw conclusions about some of things that we're seeing right in here. All right, so we're going to jump into that in the next class. In the meantime, if you have any questions on level one data, on the bid price, the ask price, or the spread, feel free to email me Ross Warriortrading.com And you can also check out our website where we've written extensively about day trading terminology. All right guys! I'll see you in the next class.

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