Exactly right. However, good luck in analyzing it. I now wonder if Level 1 data with regards to the InsideBid/Ask and sizes is more volatile than Level 2 for the "close to the market" levels.
I'm not making a judgement on jigsaw, bookmap or any other software used to present level 2 in a specialized visual format. I know guys using both and are very pleased. I use neither, but I do use level 2. But there are markets I wouldn't trade without level 2. @TrailerParkTed and @JesseJamesFinn1 what say you? Would you give up your level 2 and find Level 1 adequate? I wouldn't.
Well you guys are much better than me at that level of analysis. To me, Level 2 is like playing a video game. Of course, traders like Navinder Sarao were pretty successful at it. Of course, he got "fed up" with all of the spoofing and fake orders....then he effectively got arrested....and now he can no longer trade. In talking with other traders, there is apparently STILL a lot of spoofing occurring despite all the recent sanctions and arrests by the SEC and CFTC.
Spoofing is part of human nature and thus part of the Market, the difference is how you do it and when/if you get caught.