Depth of Market (what that 3rd number)

[bunny]

TSQ/TBQ are always misleading. for eg, nifty TBQ is 10,00,000, the 9 lak may be placed far below the cmp say 4600, which is 400 points below 5000 .
likewise the other way around.

thanks, that is what I wanted to know.

 

[rajeshn2007]

reg your ivrcl, there would not have been buyers/ less buyers between 360/310.
probably you would have traded next month futures, which might be less liquid. avoid illiquid and "market orders".

 

[bunny]

This means that the TSQ/TBQ number is the most easy number to manipulate. You don't to buy a single share, pay any brokerage, service tax, stt, etc. and can still cancel that order without any harm done to you and walk away freely.

 

[bunny]

reg your ivrcl, there would not have been buyers/ less buyers between 360/310.
probably you would have traded next month futures, which might be less liquid. avoid illiquid and "market orders".

I think there is some confusion. I wasn't the one who has traded those IVRCL futures. It was some other guy. I had merely replied in that thread.

 

[rajeshn2007]

ok then I would post this msg in his thread
And one more thing, is it possible to see the TBQ/TSQ more than the fist 5 bids/asks?
Anyone has an idea about it?

 

[bunny]

ok then I would post this msg in his thread
And one more thing, is it possible to see the TBQ/TSQ more than the fist 5 bids/asks?
Anyone has an idea about it?

TSQ/TBQ are not limited to best 5, but show all pending LIMIT orders.

I think you were asking if we can more than the best 5. As in, the whole order books so that we can see where there is a big buyer or big seller. Even I am looking for an answer, but I am not sure if small retain traders like us can do that. May be the big boys can do that. BTW, I heard in US exchanges, some show the entire order book! I am not sure if that is applicable to small retailers like us too.

 

[rajeshn2007]

TSQ/TBQ are not limited to best 5, but show all pending LIMIT orders.

I think you were asking if we can more than the best 5. As in, the whole order books so that we can see where there is a big buyer or big seller. Even I am looking for an answer, but I am not sure if small retain traders like us can do that. May be the big boys can do that. BTW, I heard in US exchanges, some show the entire order book! I am not sure if that is applicable to small retailers like us too.

Yes exactly.
Big boys do have the facility, so that they can see where the "other big buy/sell orders " are, which might be placed anywhere, not necessarily at supports/resistances.

(btw the ivrcl thread is not found?)

 

[bunny]

IVRCL thread:

http://www.traderji.com/introductions/33294-abnormal-freak-trade-happened-what-remedy.html

 

[columbus]

Ah, nice you got TSQ/TBQ into discussion.

I have seen that both these numbers go one increasing throughout the session, but they never decrease.(this could be an error in my observation)

So what exactly does this number represent? Is it the numbers of shares in queue waiting to be bought or sold.

It cannot be the no. of shares bought or sold because if it is so, then both should be equal!

For eg: If there is an large order to buy a huge quantity to be bought but at a price much lower than the LTP,this will severely inflate the TBQ number and give a false impression that there are many buyers in queue.

Hi Bunny,

Say the current price is 4900.

LONG:one buy the stock at CMP ,and can place a sell order
at 5200.There is nothing wrong in it.

SHORT:Similarly one sel the stock at CMP , and can place
a buy order at 4600.There is nothing wrong in it.

Both are reflected in TBQ and TSQ,Apart from these one
can place the orders with their previous holdings also.
Altogether they mislead the investor.

 

[trader.trends]

Bunny
There are two more things you have to keep in mind with regard to TBQ and TSQ. The first is that the figure does not reflect the stoploss orders. All SL orders are stored in a different book and released into the market book (TBQ/TSQ) only when the stops are triggered. Suppose the top two buy orders are at 100 (qty say 200) and 99.50 (qty say 300) but some one has a SL buy at 99.75 (say qty 1000) and the LTP is 100.50 then this 1000 qty order is not reflected in the order book. That is how you see a surge in volumes when SLs are triggered.

Second you have to be conscious of "disclosed qty" that you have in your order entry screen. If someone wants to sell say 10000 qty of a share but does not want to disclose it fearing market manipulation against him he will put a sell order for 10000 units with a disclosed qty of say only 1000. Then you will see only 1000 shares for sale. When that is executed the system will release the next 1000 into the system. You can see this in action when you see the sell/buy qty in the top of the order book does not change even though shares are trading and volume is increasing.

Also remember that the really large orders which change the game come out of the blue and are not really reflected in the order book for obvious reasons.

Just wanted to add those two points as we were on the topic of Order Book and perils of trading watching that.