Question

Which one of the following statements is false about stacked & then conditions of Level 2?

A) Stacked orders represent a concentration of buying or selling interest.
B) Level 2 conditions provide real-time market depth.
C) Stacked orders are always placed at the market price.
D) Level 2 helps traders assess supply and demand dynamics.

Answer 1

Stacked orders represent buying/selling interest, Level 2 provides real-time market depth, and traders use Level 2 to assess supply and demand dynamics.

Step-by-step explanation:

Stacked orders represent a concentration of buying or selling interest. Level 2 conditions provide real-time market depth. Stacked orders are not always placed at the market price, so the false statement is C) Stacked orders are always placed at the market price. Level 2 helps traders assess supply and demand dynamics.