Investors to get access to Market Depth but what is Market Depth?

Securities Board of Nepal (SEBON) had organized a press meet on December 06 to unveil various programs to modernize the capital market of Nepal.

In the press meet Mr. SitaramThapaliya, General Manager of NEPSE, had said,” We are in the testing phase of the market depth system. It is expected to be completed in in 2-3 weeks of time. Once it is completed, we will make it available to public immediately.”

As of now the market depth has been available to the brokers only. Now, the investors will have access to Market Depth in very near future.

Market depths is an electronic list of buy and sell orders, organized by price level and updated to reflect real-time market activity.

It provides information such as number of units of shares available to purchase at a certain price. It also shows price, the buyer is willing to pay for certain units of shares.

All of this information can be useful to traders because it shows not only where price is now, but where it is likely to be in the near future. As market depth is in real time, it changes constantly throughout the trading session.

Market depth also shows the size of an order needed to move the market price by a given amount. If the market is deep, a large order is needed to change the price.