Penny stock quotes provide you the latest price position and related trading information of a particular penny stock listed on the exchange. It is critically important to have a clear understanding of penny stock quotes when you conduct the trades on your own. Timely quotes can be very important, particularly for a short term trader.
Any error in reading or misjudging a stock quote can prove to be costly. Penny stock quotes are available through many different online sources as well as through print, television, mobile phone, and other media. You need to choose a reliable source for the most current, accurate, and comprehensive information about a particular penny stock trade price at a given point of time during trading hours.
Penny Stock Quotes at Level 1
Penny Stock Quotes are categorized into different levels to suit the needs of different types of traders, investors, and analysts. Quotes at Level 1 usually include the bid, ask, last trade price, last trade volume, the timing of last trade and the total trade volume of the day.
This is the most basic level of information that is provided most online and offline sources for investors. However, this information is not adequate from the point of view of analysts, regular traders, and larger investors who need the maximum possible data in real time in order to make their trading and investment decisions most accurately.
Penny Stock Quotes at Level 2 and Level 3
Level 2 penny stock quotes include all the information that is provided under Level 1 along with additional data that provides a deeper insight into the market behavior of a particular penny stock. Penny stock quotes at Level 2 are a crucial tool for experienced penny stock traders and analysts. These quotes reveal the best bid and ask for each individual market maker participating in a particular penny stock. For an experienced trader, operating without such information is as good as “trading blind.” Without such data, it becomes difficult for sharp traders to estimate solid support levels for a particular stock as well as the expected levels of resistance.
Level 2 quotes may be available as streaming information, while some providers offer additional trading tools such as financial charts, real time news alerts, scanning tools, and filters to assist a trader make a comprehensive trading decision. Level 3 quotes include level 1 and 2, and also provide information about the bid order and ask order size. Level 3 quotes are usually available only to market makers, and not to retail traders.
Real Time Quotes
A large number of online resources and TV channels are available that provide quotes that are delayed by 15 to 20 minutes. Such quotes are good for market research, but they are not suitable for a trader who needs to make a quick buying or selling decision.
Anything can happen within 15 or 20 minutes. It is always a good idea to subscribe to an OTC-BB or Pink Sheets Level 2 quotes service, if you are a serious penny stocks trader. Real time level 2 quotes can potentially save you hundreds or thousands of dollars, so it is entirely worth it to subscribe to these quotes as a trader.
How to Read Penny Stock Quotes
The first part of the quote represents the name of the company and ticker. In case of penny stocks, the quote may have a suffix that says: .ob or .pk. This indicates that it is a penny stock listed on the OTCBB or Pink Sheets. Depending on the level of the quote available to you, you can estimate how recent a quote may be.