Should I use Level 1 or Level 2 for Day Trading?

[Mod-MattZ]

Choosing between CME Level 1 and Level 2 market data depends primarily on your trading style and expertise. Level 1 provides basic market information, including the current bid, ask, and last traded price, while Level 2 offers detailed depth of market (DOM) data.

For most chart-based traders, Level 1 data is sufficient and more cost-effective. While valuable, the deeper market insight provided by Level 2 data requires specialized skills to interpret effectively. Reading market flow through the DOM is an advanced technique that few traders have mastered.

Consider Level 2 data only if you specifically rely on DOM analysis and have developed the expertise to extract meaningful insights from market flow patterns. Otherwise, the additional cost of Level 2 data may not justify the investment.

Let us know if you have any questions.

Best,
Matt Z
Optimus Futures
Optimus Futures