What is a Level I Quote?
A level I quote is the current best bid and offer for a security that trades on the Nasdaq or over-the-counter markets.
How Does a Level I Quote Work?
Level I quotes do not disclose which market makers are bidding for or offering the security, whether there are limit orders on the security, or the size of potential trades at a particular price. In other words, the viewer does not have access to view the depth of the 'order book' or who has an interest in a security and at what price.
Why Does a Level I Quote Matter?
Level I quotes are limited, but they do give traders and investors a basic idea of how a security is doing. To get more information, traders need access to Level II and Level III quotes.