What is Market Depth in Trading?

Market depth shows the quantity of buy and sell orders available at multiple price levels beyond the best bid and best ask. For example, a market-depth screen may show:

• Buy side: ₹499, ₹498.90, ₹498.80, ₹498.70

and

• Sell side: ₹500, ₹500.10, ₹500.20, ₹500.30

This allows traders to see how much displayed liquidity exists at different price levels.

What is Level 2 Market Depth Trading in India?

Level 2 market depth trading in India refers to viewing multiple levels of bids and offers (rather than only the best available bid and ask). Traders may use this information to assess:

• Available displayed liquidity
• Bid-ask spread
• Concentration of orders at particular prices
• Potential execution conditions
• Changes in displayed buying and selling interest

However, market depth does not guarantee price direction. Large orders can be cancelled, modified, or executed, and actual market activity can differ from the displayed order book.

Explore Market Depth With Trade246

Market depth lets traders view displayed buy and sell quantities across multiple price levels. Trade246 gives you access to real-time market prices across multiple market segments to monitor changing prices and market activity.

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