Electronic Trading Guide
for NASDAQ
Level 2
by
Online Trading Academy.com
July Edition
Official Training Guide for
Direct Electronic Traders
2
DISCLAIMER
This Training Guide is designed to provide some of the information necessary and/or relevant to understand Day
Trading utilizing the Small Order Execution System (SOES) on the NASDAQ System. It is not designed to provide
all information required to understand Day Trading utilizing SOES.
All trading involves risk and Day Trading involves a higher level of Risk compared to other common forms of
Capital Management such as Long Term Investments in Stocks, Bonds or Mutual Funds. Proficiency at Day Trading
will generally take a long period of time to develop, as it is dependent upon, among other things, the student’s
capacity to understand the high degrees of risk involved, aptitude for proper risk management to preserve capital,
and potential to develop all of the necessary skills to create profitable results.
The user of this Training Guide must understand that actions taken in any trading, including Day Trading may result
in the loss of all Capital. Further, that in cases that involve the use of extended Buying Power and Margin, an
investor may lose all Capital and assume the liability of owing additional funds in an amount that is substantially
more than the initial Capital.
The securities markets are directly affected by many factors, including economic and political conditions, broad
trends in business and finance, legislation and regulation affecting the national and international business and
financial communities, currency values, inflation, market conditions, the availability and cost of short-term or long-
term funding and capital, the credit capacity or perceived creditworthiness of the securities industry in the
marketplace and the level and volatility of interest rates.
As a result of the varied risks associated with the securities markets, which are beyond the control of the investor
and of Online Trading Academy.com, an investor’s capital and income