FAQs:
What is Market Depth?
Market Depth is a feature in Upstox Pro that provides real-time insights into the bid and ask activity for any stock. It shows the top buyers (bids) and sellers (asks), helping traders gauge market sentiment, liquidity, and volume at different price levels.
How does Market Depth benefit traders?
It helps you to:
- Understand market sentiment: Analyse bid-ask spreads to determine buying or selling interest.
- Monitor liquidity: Identify the number of shares available for trading at different prices.
- Spot opportunities: Use the Depth 30 feature to get detailed visibility into the top 30 price levels, aiding optimal entry and exit strategies.
- React in real-time: Quickly spot trends during volatile market sessions to make informed decisions.
How can I access the Market Depth feature on Upstox Pro?
To access Market Depth:
- Open the Upstox Pro app.
- Navigate to your Watchlist and select the stock you wish to analyse.
- Tap on the Summary tab.
- Scroll to the Market Depth section to view live bid-ask data and volumes at different price levels.
What is the Depth 30 feature and how does it work?
The Depth 30 feature provides a comprehensive view of the top 30 bid and ask price levels for a stock. This deeper insight helps traders:
- Understand market dynamics beyond the standard 5-level view.
- Identify price levels with significant buy/sell interest.
- Reduce the risk of sudden market shifts by being better prepared.
Can Market Depth help during volatile phases?
Yes, Market Depth is particularly valuable during volatile periods.
What is Depth 30?
The Depth 30 feature provides a detailed view of the top 30 bid and ask prices, giving traders a more nuanced understanding of market activity. By offering a deeper look at price levels, it helps reduce the risk of being caught off guard by sudden market shifts, allowing for better-informed decisions.
What information can I derive from bid-ask spreads?
The bid-ask spread represents the difference between the highest price buyers are willing to pay (bid) and the lowest price sellers are asking (ask). Narrow spreads indicate high liquidity and stable sentiment, while wider spreads may signal market uncertainty.
Why is Market Depth useful for short-term traders?
Short-term traders benefit from Market Depth by:
- Spotting immediate opportunities based on real-time price and volume data.
- Reacting quickly to market movements during volatile sessions.
- Planning trades with visibility into liquidity at various price points.