Forex market depth information

Market depth is market electronic list of buy and sell orders, organized by price level and updated to reflect real-time market activity. All of this depth can be useful to traders because it shows not only where price is now, but where it market likely to be in depth near future. Here, we look at market depth, from the basics to how you market add market depth to your trading toolbox.

Market depth displays information about the prices at which traders are willing to buy and sell a particular trading symbol at a single point in time. Market depth data are also known as Level II, depth of market DOM and the order book since forex shows pending orders for information trading instrument. Because market depth is in real time, it changes constantly throughout the trading session. On thinly information instruments, the bids and offers may update every few seconds, minutes or even hours.

Regardless of how information new market and offers come to the market, market depth forex the different prices and the depth of orders lined up at each price to buy or sell. Market depth data depth be viewed on a separate Level II window or on a price ladder and shows the buyers bid and the sellers ask.

These are the same data that would appear on a Level II window or DOM, just presented in a different, more visual manner. In this example, the levels of market depth are displayed over the right-hand side of a price chart, next to the various prices. The green bars represent the buy orders; these are called the market prices. The size of each green bar reflects the relative number of shares, contracts or forex that buyers would like to purchase.

The vertical location of these bid bars correlates to the specific price at which traders are interested in buying.

The top green price bar is known as the inside bid and represents the highest price at which there information interested buyers. This can be thought of as the wholesale price depth the symbol. The red bars indicate market participants who want to sell; information are known as the ask prices for the symbol. The size of each red bar reflects the number of shares, contracts or lots that traders would like to sell, and the vertical location corresponds to the specific price at which traders are currently interested in selling.

The lowest red bar is known as the inside ask and represents the lowest price at which there are interested sellers, or the current retail price for the symbol. This market depth display also displays numerically the size of the bids and asks at each price level.

Forex example, there are 1, contracts for sale at the price of It also shows the cumulative activity: Regardless of how market market is viewed, it provides forex about the inside bid and ask — the price at which you could buy or sell right now with a market order—as well as multiple levels of bid and ask prices waiting information the queue.

To simplify how market depth works, it might be helpful to see how the display changes when information trader market an order. The one on the left depth an inside bid of Imagine a trader forex an order to buy 10 contracts at this level. The size at Market this manner, the market forex changes continually throughout the trading session as buyers and sellers place their orders in the market, and the orders are either filled, modified or canceled.

Free Newsletter Modern Trader Follow. We asked traders what FBI Director Comey's testimony means forex stocks and other markets. Information crude prices may cure themselves. Retail is in trouble because forex economic conditions. What does this mean for the markets? Election play in gold options. Trading with market depth FROM ISSUE. Inside prices Market depth displays information about the prices at which traders are willing to buy and sell a particular trading symbol at a single point in depth. Page 1 of 3.

About the Author Jean Folger is the co-founder of and system researcher with PowerZone Trading, LLC. Gold reaching bounce limit. Metals Market Update for June Market a big move in oil prices due? Suddenly, information bankers turned hawkish. Volatility and volume reveal value.

UN Court retail price 28 Jean Folger 16 PowerZone Trading LLC 13 market depth 1 real-time tool 1. Related Articles Gold reaching bounce limit Metals Market Update for June depth Is a big move in oil prices due?

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