Traders are constantly looking for ways to refine their strategies and gain a deeper understanding of market trends. So adding to the arsenal of features on Dhan, we now have Full Market Depth!
With Dhan’s new “Full Market Depth” feature, traders now have a powerful tool to navigate the markets with enhanced precision, offering a broader view of market activity than ever before.
Why Do We Need Full Depth Market Data?
Traders, particularly in the Indian market, have always been on the lookout for alternative data sources to build better trading models. The standard approach of relying on the Last Traded Price (LTP) or limited market data often fails to provide a comprehensive view of the market’s true dynamics.
While the LTP reflects the price of the most recent transaction, it doesn’t tell the full story. The real price action, particularly for larger orders, is found in the bid/ask spread and the order book.
Traditionally, trading platforms show a limited 5-level market depth, which only provides the best possible bids and asks. However, this limited view often misses important market signals, such as large order builds beyond the top five price levels. These unaccounted-for price levels can greatly influence market movement, making it harder for traders to assess market conditions accurately.
Without seeing the full depth of the order book, traders are left with an incomplete picture, leading to less informed decisions, especially when dealing with large orders or volatile instruments.
What is the Feature?
Dhan’s Full Market Depth feature is designed to provide traders with an unprecedented level of visibility into market data.
Instead of the typical 5-level market depth, which only shows the best bids and asks, Full Market Depth extends this view to 20 levels. Recently, we also launched the 20 Market Depth!
See what it’s all about here.
With the Full Depth feature, users can access the complete market depth for both equity and derivative segments on the Dhan platform (tv.dhan.co).
Full Market Depth not only offers a more comprehensive view of the order book but also enables traders to track all significant levels of high order volumes. This data is presented in a way that makes it easy to visualize the flow of orders and understand how they might impact price movement.
The feature is available on the Dhan TradingView charts and includes full order book data for NSE-listed equities, as well as active futures and options contracts. By opening up the entire order book, Dhan gives traders a unique advantage in their analysis. The data streams are updated in real-time, offering up-to-the-minute insights on market trends.
How Does It Help?
The introduction of Full Market Depth addresses several key challenges faced by traders in the Indian market. The traditional 5-level depth view often left traders blind to significant price action happening beyond the top levels.
By expanding this depth to many levels, Dhan provides a far more detailed and accurate representation of the market.
Better Market Analysis
Full Market Depth allows traders to see the full order book, providing a deeper understanding of the market’s inner workings. By observing price levels beyond the standard 5 levels, traders can identify large order builds that could impact price movement. This insight helps traders anticipate shifts in the market and make more informed decisions.
Enhanced Order Execution
For traders placing larger orders, knowing the full market depth is crucial. The ability to view deeper price levels helps traders avoid slippage and execute orders more effectively. Understanding where significant order volumes are clustered can guide traders to place their orders at more optimal price levels, improving their execution strategy.
Tracking Order Flow
With the ability to visualize the order flow directly on the charts, traders can spot trends and patterns that might not be visible in traditional data views. This creates an advantage in detecting potential price reversals or breakouts, enabling traders to act swiftly and accurately.
Institutional-Level Insights for Retail Traders
One of the core goals of Dhan’s Full Market Depth is to bridge the knowledge gap between institutional and retail traders. By offering retail traders access to detailed order book data, Dhan levels the playing field, empowering them with the same insights that institutional traders rely on. This feature is a step towards democratizing trading tools and giving individual traders the power to make more informed decisions.
Real-Time Data Processing
The backend technology that supports Full Market Depth is cutting-edge. Dhan processes millions of rows of order book data each second and streams it in real-time. This ensures that traders always have access to the most current data available, allowing them to react to market changes as they happen. The server-side optimizations and advanced algorithms ensure that the data is delivered quickly and accurately, even when handling massive volumes of market data.
Advanced Charting Features
Traders can see the entire order book integrated seamlessly with their charts. This integration offers a more intuitive way to analyze market depth, with visualizations showing price levels, order volume, and trends that directly affect price movement. By combining market depth with charting, traders gain a holistic view of both the price and volume action, which is essential for making data-driven trading decisions.
Conclusion
Dhan’s Full Market Depth feature marks a significant leap forward in how traders can analyze and navigate the markets. By offering an expanded 200 bids view of the market depth, Dhan provides traders with insights that were once only available to institutional investors.
With real-time data processing, enhanced order flow visualization, and seamless chart integration, this feature helps traders make more informed decisions, improving both their analysis and execution.
The Full Market Depth feature is not just an upgrade—it’s a game-changer in how Indian traders can approach market analysis. To know more, watch this detailed video:
