فارس من | The depth of the market became visible to all shareholders

According to the economic correspondent of Fars News Agency, one of the issues that has been protested by many real and micro-shareholders of the capital market in recent years, is the issue of not seeing the depth of the market by them.

This advantage was visible to some legal shareholders, and they were able to make decisions based on market depth and trade.

In my Fars system, a number of Fars News Agency audiences in recent months have registered a request entitled “Orders to buy or sell shares visible to shareholders.” “As all minority shareholders and ordinary people are aware, ordinary people can only see 5 rows of all the buy and sell orders registered on the stock trading side in the brokerage systems and the site of the stock exchange organization,” they said. .

Brokers and some properties have access to all registered orders on the buy and sell side. As the head of the judiciary pointed out in his speech, this in itself leads to the emergence of various types of rents. Certainly ordinary people can decide whether to buy or sell their stock after seeing all the orders on the buy or sell side, but at the moment this is only available to brokers. “The signatories of this campaign are desperately asking the stock exchange organization, as the custodian of this matter, to make it possible for ordinary people to reduce the rent.”

Follow-ups show that since the beginning of this week, the depth of the market in the desktop versions of brokerages has been visible to all shareholders, and the Exchange Organization has created this feature for all shareholders so that they can also benefit from this issue.

* What is the depth of the stock market?

Market depth reflects the amount of buyers and sellers in a market. If the amount of buyers and sellers is always such that without a buy and sell queue, whenever you wanted to be able to buy or sell stocks, we would say that the market depth is great. So in practice, deep markets have high liquidity and the speed of trading in them is high.

In other words, market depth, in its simplest definition, represents the amount of orders placed to buy or sell an asset at different prices. In other words, when the supply and demand is such that shareholders can do their desired trade without being in the buying or selling queue, we say that the market depth is high.

* What capabilities does observing the depth of the market create for shareholders?

Market depth information enables traders to see an overview of all orders associated with a symbol. With the help of this feature, the possible direction of price movement of a share can be determined. This feature also helps traders to take advantage of short-term price fluctuations. For example, if a person wants to buy a lot of stock in a symbol, market depth data allows him to estimate the average purchase price.

With the market depth chart, it is possible to better identify the fear order and the support order and not fall into the trap of these orders. Fear order is a sell order that is registered to create false confidence that the continuation of the share process is negative. Fear order is also called fake order.

Also, the order of support or greed is the purchase order that the share actor registers in order to support the share and to motivate the purchase or false holding of the share in the shareholders.

Using the market depth chart, you can see the difference between buying and selling at the traded price. This feature can better show the amount of liquidity, supply and aggregate demand in the symbol in question and the shareholder will have a better recognition for the transaction.

Market depth information is updated instantly and traders can make their decisions based on the latest statistics.

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