What is Nasdaq Level 3 primarily used for?

Nasdaq Level 3 is primarily employed by market makers to enter and update their quotes for various securities. This system provides access to a comprehensive view of the Nasdaq market, including active orders and allows market makers to display their buying and selling quotes to facilitate trading. It is integral for market makers as it enables them to manage their order flow effectively and to respond in real time to market changes, ensuring they remain competitive.

This functionality is distinct from the other options listed, which involve different aspects of market data or analysis. For instance, while displaying overall market trends or viewing historical stock prices can be accomplished through other means, Level 3 specifically caters to the needs of market makers interacting directly with the market. Analyzing stock performance typically requires a separate set of tools aimed at evaluating a stock’s past and potential future performance rather than the live quote management that Level 3 provides.