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Buy and sell market depth

Discussion in 'Technical Analysis' started by chandrasekaran_s, Mar 13, 2015.

  1. chandrasekaran_s

    chandrasekaran_s New Member

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    Hi

    Can anyone explain me what does buy market depth and sell market depth implies? What should I consider while buying and selling respectively. It is given in the share khan trade tiger platform.

    Plzz help
     
    chandrasekaran_s, Mar 13, 2015
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  2. shabbir

    shabbir Administrator Staff Member

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    Don't try to focus on too many things as it will confuse things further. I am not sure how you can use Market depth to decide on the direction of the market but it is list of buy and sell orders sorted based on price.

    We only can see 5 best orders on either side which can even be manipulated using disclosed quantity and so it is better to avoid it.
     
    shabbir, Mar 13, 2015
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  3. chandrasekaran_s

    chandrasekaran_s New Member

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    Thanks Shabbir

    I want to know while buying a share which price should I consider
    whether buy market depth or sell market depth?
    In sharekhan trading window they give 5 each for buy and sell market depth.

    Which one and how should i decide the price while buying?
     

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    chandrasekaran_s, Mar 13, 2015
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  4. shabbir

    shabbir Administrator Staff Member

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    None. Market depth for buying or selling is complete crap. You can find the same market depth on NSE website as well and it just means nothing. In fact I have used what Sharekhan calls as market depth to explain paper trading - http://shabbir.in/paper-trading/ and I don't think it is much use other than that
     
    shabbir, Mar 13, 2015
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  5. chandrasekaran_s

    chandrasekaran_s New Member

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    Thanks Shabbir

    You mean to say that sell market depth are sell orders from which I have to choose the price to buy a stock and buy market depth are buy orders from which i have to choose the price at which I sell my stocks?

    Hope I am sounding right?

    But why does the sell orders are always on higher side than the trading price at that moment?
     
    chandrasekaran_s, Mar 13, 2015
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  6. shabbir

    shabbir Administrator Staff Member

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    Yes you are right and sell price has to be higher because if sell price matches buy price, it will be an executed trades.
     
    shabbir, Mar 13, 2015
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