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Market Depth

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  #1  
Old 14th September 2006, 02:49 PM
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Default Market Depth

Hi all,

I have often come across the term market depth. Can some one explain what it means, and how is it defined or calculated?
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Old 24th September 2006, 05:02 PM
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Default Re: Market Depth

Hmm..Not sure but isn´t it the levels in DOM (depth of market)? Not sales but the other where you ee the orders for each level.
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Old 15th March 2007, 12:25 PM
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Default Re: Market Depth

will seniors explain the Market Depth in detail.

it is the small box shown for particular scrip for that particular day... showing information of 5 bid and ask prices ( at a time ) for that scrip for that day....

my queries r ...

1) bid prices r shown in lower denominations say like 75, 74.95, 74.85, 74.80 etc.. while ask r shown in grater denominations like 75.10, 75.15, 75.25...and so on...
how the prices moves.... on the basis of the time of order placed by the customers or any other criteria ?

2) it also shows the total buy qty and total sales qty.... is this the qty already bought / sold or the qty. which is still pending.
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Old 15th March 2007, 01:41 PM
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Default Re: Market Depth

Quote:
Originally Posted by rajsingh View Post
Hi all,

I have often come across the term market depth. Can some one explain what it means, and how is it defined or calculated?
I presume you want to know about market breadth, right?

These are also known as internal market momentum studies and comprises of studies such as the advance-decline ratio, net new highs etc.

For example, NSE has say total 960 stocks. If on a particular day 300 advanced and 660 declined, we can say that the market breadth was poor.

ss
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Old 15th March 2007, 01:57 PM
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Default Re: Market Depth

Quote:
Originally Posted by shreyadr View Post
will seniors explain the Market Depth in detail.

it is the small box shown for particular scrip for that particular day... showing information of 5 bid and ask prices ( at a time ) for that scrip for that day....

my queries r ...

1) bid prices r shown in lower denominations say like 75, 74.95, 74.85, 74.80 etc.. while ask r shown in grater denominations like 75.10, 75.15, 75.25...and so on...
how the prices moves.... on the basis of the time of order placed by the customers or any other criteria ?

2) it also shows the total buy qty and total sales qty.... is this the qty already bought / sold or the qty. which is still pending.
If u want a buy a stock u hav to look for ask prices. Similarly if u want to sell u look for ask price. Yes as the sauda's get done the Bid asks chenge continuosly. Say u place an Buy order of 100 Gujrat Ambuja shares ur order will be reflected in bid area. If i place Sell order of 110 shares my order will be shown in the ask area. Now, since both our orders are at Rs say 108 the deal is done and we both get our orders executed. But the remianing 10 will still show on the ask screen, till another one doesnt want to sell at the rate.


Total buy/sell qty is trades already done.
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Old 15th March 2007, 03:09 PM
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Default Re: Market Depth

Here's what Wikipedia says http://en.wikipedia.org/wiki/Market_depth
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Old 15th March 2007, 04:31 PM
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Default Re: Market Depth

I think the Total Buy/Sell quantity is the pending total limit orders in oredrbook.
If they are trades already done, they wud be equal( Corect me if i am wrong)
BTW does anybody look at orderbooks, they move very wildly 99% of the times
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Old 15th March 2007, 05:41 PM
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Default Re: Market Depth

According to NSE in India u can see 5 best bids and ask..in US several brokers prvide levelII quotes with a view of the entire orderbook.
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Old 15th March 2007, 08:02 PM
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Default Re: Market Depth

Quote:
Originally Posted by beginner_av View Post
According to NSE in India u can see 5 best bids and ask..in US several brokers prvide levelII quotes with a view of the entire orderbook.
Thnx i was always been wondering about Level 2 qoutes.
What has been ur experiience does this thing helps?
Secondly say somebody puts a huge market order , will that in anyway will be reflected in orderbook no.s
Naveen
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