How to Use Market Depth Window on Zerodha Kite?

Using the online trading account one can do the transaction process more easily. In order to involve in online trading one must know each and everything regarding the trading account. An online trading account does not just consist of buy and sell option, it provides chart option by which you can do technical analysis of stocks according to your wish. Besides this, there is market depth window which is today’s subject to discuss.

Market Depth Window

First of all, I am going to cover the definition or function of the market depth window. This window is also referred to as the snap quote window. On Zerodha Kite one can get the market depth option with each selected script. Multiple MD windows can be opened in Zerodha Kite. Just move your cursor on the script you select, you can get the market depth besides buying and selling option. It is an updated reflection of real-time market activity or an overall presentation of market movements. This window not only displays the overview of current market strength but also helps traders to evaluate the market activity.

In Zerodha Kite, the information one can get through MD window is bid price and offer price with orders and quantity. Along with this, open, high, low, close, the average price, volume, LTQ (last traded quantity), LTT (last traded time). In order to clarify the subject more easily, I am giving an image of MD window option from Zerodha Kite.

market depth window

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The above image is given here as an example. As you can see that besides B (buy) and S (sell) option you can find market depth windows. Step by step I am going describe the available information in MD windows.

  • Bid price: This refers to the price a buyer is willing to pay for a security at the bid price. The window shows best five bid price with orders and quantity.
  • Offer price: The price at which sellers are willing to sell securities. MD displays the best five offer price as well with orders and quantity.

Therefore, bid price highlighted in blue and offer price highlighted in red. As we can see in the above statement that the offer price is more than the bid price. I have already mentioned that bid price refers to buy price and offer price is sell price. Hence, when the offer price is more than bid price that indicates the market is going down and when the bid price is up, the market is in a bullish trend.

From the other information like open, high, low, close, volume, LTT, LTQ traders can evaluate any security and analyze the price. It shows not only where price is now, but where it is likely to be in the near future.

So, Market depth window plays a significant role in the online trading account. Traders can fully utilize the option to monitor current market price movements.

Categories: Stock Market Basics

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