Depth of market or market depth.

Very often in various publications one comes across such concepts as the price depth or market depth; in essence, these are synonyms characterizing the same thing.

The Market Depth is a data table that displays currently placed exchange orders. The table has several columns: volume, contract price, and trade.

This data helps assess the true market depth and actual transaction volumes broken down by price quotes.

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

You can call the market depth by right-clicking on the currency pair chart in your trading terminal, or by pressing the Alt and B keys simultaneously (B is English), 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 the information.

For example, in MetaTrader 4 there are only two columns - Price and Trade, so it is not possible to fully use the market depth in this case, MetaTrader 5 already has all three columns - Volume, Price and Trade, which is why we will consider working with the depth of field on the latter option.

And so, having opened the market depth on the chart of a trading instrument, we see:

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

• Price - directly the price of the quote at which the transactions specified in the volumes were concluded.

• Trade - this column shows the types of orders placed and the volumes of transactions carried out 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 depth of market is divided into two parts:

• Upper - sell orders, red.
• Lower - buy orders, blue.

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

If you are interested in trading through the depth of market, you can get complete information using the " Instructions for MetaTrader 5 ".

In general, market depth is a fairly good tool, especially if information on the volume of transactions is available. The depth of market window also significantly 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.