What’s the difference between Level 1 and Level 2 futures market data?

Market data determines how much depth you can see in the order book — meaning how much detail you have about bids and offers.

There are two main types: Level 1 and Level 2.

Level 1 shows:

• The highest bid

• The lowest ask

This is often referred to as “Top of Book.”

It gives you the current best buying and selling prices, but no additional depth beyond that first price level.

Level 1 is sufficient if you:

• Trade based on charts

• Focus on price action

• Don’t rely on order flow depth

Level 2 shows multiple layers of bids and asks beyond the best price.

This allows you to see:

• Several price levels above and below the current market

• The size available at each level

There are two types of Level 2 views:

Shows aggregated volume at each price level.

All orders at the same price are combined into one total size.

Shows every individual order at each price level.

You can see each order separately instead of aggregated volume.

If you rely on order flow, DOM trading, or liquidity analysis, Level 2 gives you more insight.

If you trade based on structure and execution without needing depth, Level 1 is usually enough.

The choice depends on your trading style — not on what’s “better.”