Orders & trading
What is Market depth?
Also called: Order book
Hinglish mein padhein: Market depth kya hota hai?
Market depth shows the best buy and sell orders waiting in the order book at different prices, with their quantities.
Most brokers show the top five bid and ask levels. Depth helps you see whether a large order will move the price.
Orders in the book can be cancelled at any time, so depth is a snapshot, not a promise.
Related terms
- Bid, ask and spreadThe bid is the highest price a buyer is willing to pay, the ask (offer) is the lowest price a seller will accept, and the spread is the gap between them.
- LiquidityLiquidity is how easily you can buy or sell a stock quickly without moving its price much.
- Limit orderA limit order sets the worst price you will accept: a buy limit fills at that price or lower, a sell limit at that price or higher.