What does Level 1 Market Data provide?

Level 1 Market Data is primarily focused on providing the most basic yet crucial information regarding financial instruments. It includes the current bid price and the ask price, which represent what buyers are willing to pay and what sellers are willing to accept, respectively. This level of market data is essential for traders and investors as it gives them a snapshot of the market conditions at any given moment without delving into the complexities of order books or historical data.

The core benefit of Level 1 data is its immediate usefulness for making quick trading decisions. Investors rely on bid and ask prices to gauge market sentiment and to make informed decisions about trade execution. In contrast, other options like full order book information or historical trends delve deeper into market dynamics, which are not part of the fundamental offering of Level 1 data.