Depth of market or market depth.

Very often in various publications one comes across such concepts as depth of market or market depth; in fact, these are synonyms characterizing the same moment.

Depth of Market - represents a table of data that indicates currently placed exchange orders.

The table has several columns - volume, contract price and trade. The data helps to assess the actual depth of the market and the real volume of transactions in the context of price quotes.

The use and information content of the Depth of Market depends on the specific broker and whether traders' orders are displayed on a real exchange; in the latter case, you can even see your own order if it has a significant volume.

You can call the Depth of Market by right-clicking on the chart of a currency pair in your trading terminal, or pressing the Alt and B keys simultaneously, as a result the following window will appear: It may differ in appearance and functionality, depending on the trader’s

terminal in which trading is carried out and the broker providing information.

For example, in MetaTrader 4 there are only two columns - Price and Trade, so using a full Depth of Market in this case will not work, MetaTrader 5 already has all three columns - Volume, Price and Trade, which is why we will consider working with Depth of Market in the last option .

And so, having opened the Depth of Market on the chart of a trading instrument, we see:

• Volume - the total amount of orders placed by traders at a given price, the most informational indicator, since it is the volume that allows us to assess the attractiveness of the price.

• Price - directly the quotation price at which transactions are concluded, indicated in volumes.

• Trading - this column shows the types of orders placed and the volumes of transactions made with their help. For example, BLIM 50 - Buy Limit with a total volume of 50 lots are placed.

BLIM - Buy Limit
SLIM - Sell Limit
BSTOP - Buy Stop
SSTOP - Sell Stop
SL - Stop Loss
TP - Take Profit

The glass is divided into two parts:

• Upper - sell orders, red.
• Bottom - purchase orders, blue.

In addition to reference information, in this window you can place market and pending orders ; this procedure is carried out using arrows and buttons.

If you are interested in trading through the Depth of Market, you can obtain complete information using the " Instructions for MetaTrader 5 ".

In general, market depth is a pretty good tool, especially if information on the volume of transactions is available, and the depth of market window greatly simplifies the process of placing orders, and this indicator is sometimes available not only for the stock exchange, but also when trading currency pairs on the Forex market.