Lightspeed Trader Tip of The Week, Level 2 Window

Lightspeed Trader Tip May 10
Written byLightspeed
Published on10 May, 2022

Lightspeed Trader helps you easily identify when a stock is nearing the Limit Up-Limit Down level which would trigger a trading halt.

The Level 2 window will display the LULD price levels on the bid or offer to provide you with this information. To add the Level 2 window to Lightspeed Trader simply click on Window at the top of the platform and then Level 2. Click in the top section of the new window and type the symbol you wish to view. You can highlight LULD in the MM box settings as well (shown below).

What is Limit Up-Limit Down?

On April 5, 2011, national securities exchanges and the Financial Industry Regulatory Authority, Inc. (FINRA) filed a proposal to establish a new “limit up-limit down” rule to address extraordinary market volatility in U.S. equity markets. The Limit Up-Limit Down (LULD) mechanism is intended to prevent trades in National Market System (NMS) securities from occurring outside of specified price bands. The bands would be set at a percentage level above and below the average reference price of the security over the immediately preceding five-minute period. To accommodate more fundamental price moves, there would be a five-minute trading pause – similar to the pause triggered by the current single-stock circuit breakers – only if trading is unable to occur within the specified price band after 15 seconds. On May 31, 2012, the SEC approved the NMS Plan on a pilot basis.

Lightspeed newsletter

No spam. Just the latest releases and tips, interesting articles, and exclusive interviews in your inbox every week.

Latest posts

Never miss a beat

Stay on top of the latest news and market insights

View all posts

Trade stock, options and futures

Lightspeed offers active and professional traders highly accurate market data, complex order management, fast executions, and over 100 routing destinations.

Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“Content”) are provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities or contracts. Any investment decisions made by the user through the use of such content are solely based on the user's independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer or recommend any of the services or commentary provided by any of the market commentators/educators or service providers, and any information used to execute any trading strategies are solely based on the independent analysis of the user.

Join our newsletter

We’ll send you a nice letter once per week. No spam.

© 2022 Lightspeed Financial Services Group, LLC. All rights reserved.

Equities, equities options, and commodity futures products and services are offered by Lightspeed Financial Services Group LLC (Member FINRA, NFA and SIPC). Lightspeed Financial Services Group LLC’s SIPC coverage is available only for securities, and for cash held in connection with the purchase or sale of securities, in equities and equities options accounts. You may check the background of Lightspeed Financial Services Group LLC on FINRA’s BrokerCheck.