Module 1 Introduction to Stock Markets

Chapter 15

Supplementary note – The 20 market depth or level 3 data


The 20 Market Depth (level 3 data) Window

I’ve driven a car for many years and I’ve even changed my car a few times now. Each time I changed my car, the engine remained more or less the same, but the features within the vehicle and its aesthetics continuously changed. Air conditioner, power steering, and power windows were all luxury features in the car at one point, but today, I guess no one buys a car without these essential features. The game-changer for me though was parking assist. The little camera at the back of the car gave me complete visibility of the parking space available. I was no longer required to pop and twist my head out and struggle to park the car, nor did I have to bug my co-passenger to get down and help me navigate my way into a parking spot. The parking assist feature did everything and helped me execute a perfect parallel park. The parking assist feature was my edge for hassle-free car parking.

I feel the same edge while trading the markets with the level 3 data πŸ™‚

Level 3 or the 20 market depth feature is unique and has multiple uses. You’ll probably appreciate the level 3 market window if you have traded at an institutional desk. A regular retail trader would not understand this feature anytime soon, simply because this feature was unavailable all these years until we introduced it for the very first time to the Indian retail traders.

The purpose of this chapter is to help you understand how useful this feature is and get you started on building trading strategies around this feature.

If you are entirely new to this, I’d suggest you read this blog to understand what the level 3 data is all about.

Assuming you know what it is, this chapter will help you understand the multiple uses of this feature.

Contract availability

For the option traders, the 20-depth order book gives great visibility into the availability of contracts to trade and help identify better price points to execute these trade. Without this visibility, it becomes really hard to trade illiquid contracts. While I’m specifically talking about options here, you can extend this to Futures contracts as well, especially the illiquid ones.

Let us put this in context, have a look at the regular market depth (i.e. the top 5 bid-ask) of the 13000 CE expiring in Jan 2020.

We can see narrow bids on the right and a notch better offer to the left. You’d probably hesitate to trade this contract if you are someone looking at trading a few lots of Nifty.

But check what’s hiding under the hood here by opening the level 3 data –


As you can see, there are many contracts available, but they are not visible in the regular market depth. In fact, the bid and offer quantities are heavily concentrated below the 8th row respectively.

Given the availability of the contracts in this strike, the perspective to trade or not completely changes and will now depend upon your trading strategy.

Execution control

Level 3 data gives you full visibility of the approximate execution price for your trade. This is particularly useful when you decide to scalp the market. When you scalp the market β€”

  • You trade large quantities, i.e. buy and sell large amounts in quick succession to profit from small tick moves in the stock
  • Since these are quick trades, you place market orders only

Let us say you want to buy and sell 5000 shares of Hindustan Zinc; the regular market depth window gives you the following information β€”


As you can see, there is no visibility on how these 5000 shares will get filled. Now, take a look at the 20 depth window β€”


The 20 depth window paints an entirely different picture. It not only tells me that I’ll get the 5000 shares, but it also gives me information about the approximate buy price. If I were to place a market order for 5000 shares, I’d be buying this order book from 210.5 to 211.25. I also see at 211; there are 2425 shares available, so I can expect the average price is at or around 211.

Now, my decision to scalp the stock should depend on the pop I’d expect over and above 211. Maybe 211.5 or so. Of course, you’ll get the exact breakeven (post charges) if you were to use a brokerage calculator.

Position sizing

Level 3 market window plays a critical role in ‘guesstimating’ the number of shares to trade, given the liquidity of the stock. For the sake of this discussion, we will assume that the availability of capital is not an issue.

Now, have a look at the regular market depth β€”

You expect Siemens to move from 1675 to about 1690 over the next hour. So, given the fact that you are not constrained by capital, how many shares will you buy for this intraday trade?

The regular market depth window suggests that you can buy close to 175 shares. However, the 20 depth opens up a different perspective altogether β€”

In fact, the liquidity in this stock lies below the best five bid and ask, and the impact cost is reasonable. The regular market depth window fails to capture this information. Assuming you intend to buy about 1500 shares, the buy price will lie somewhere within 1675.5 to 1678, which is spread of 0.149%.

In this case, assuming you are sure about the target price (1690), you can go all in and buy through whatever is available at that moment.

Order placement

You can extend the position sizing concept and use the 20 depth market watch to place a stop loss or a limit order. Assume you have an intraday buy position in VST Tillers at 1313.8.

The question is, where you would place the stop loss for this trade? Can the 20 market depth help us with this?

Of course. Have a look at the 20 depth window for VST Tillers. As you can see, there is a concentration of bids in 1290. The good part is that the number of order count is also the highest (35) in 1290.

This implies that several traders have placed an order at 1290, indicating some sort of price action at that level. This perhaps builds a case for placing the stop-loss.

A prudent trader would probably place a stoploss not at 1290, but maybe at a price just below it.

So I was a buyer in this stock, then purely based on 20 depth I’d probably place my SL at 1290 or below, maybe at 1287 and by the same logic, set my target at 1340 or at 1338.8.

Validate the support and resistance level

I find this extremely interesting. In the example above, we identified 1290 as the stoploss price, simply because there was a concentration of bids. In other words, we expect 1290 as a support price.

If this is indeed true, then it should show up on the charts as well, right? Have a look at the chart below –

Clearly, there is some price action around 1296. Remember, support and resistance is not one price point, but rather a range. Therefore 1290 – 1300 marks as an intraday support for this stock.

This is a perfect example of seeing the price action concept play out in the market.

Another way to look at this is first to identify the S&R level and then check the 20 depth to figure if there is a concentration of bids/offers in that zone.


Hopefully, by now you’ve started to appreciate the immeasurable value 20 depth order book brings to you while trading.

Remember, irrespective of which technique you use to develop a point of view (technical or quantitative analysis), things boil down to price, and the action trades take at that price.

The 20 depth market window is essentially your ticket to validate the truth of this price action. Make sure you use your card wisely!

Do post your comments and tell us how differently you will use the 20 depth window for identifying trading opportunities.

Good luck!




  1. Shailaja says:

    cannot see market depth

  2. Salman says:

    Very nicely written, thank you for your incredible insight.

  3. Manish Rajouri says:

    Sir, how will the market depth data be relied upon? When clients or trading systems use the disclosed quantity feature, not the entire quantity is shown. In such a case, isn’t there a chance that the wrong assumptions are made looking at just the market depth?

    • Karthik Rangappa says:

      Valid point, but there is no way one can identify disclosed quantity. By the way, level 3 helps you identify contract availability. Given this, the disclosed quantity, if any, will only make the liquidity situation better.

  4. Rahul says:

    Hi Karthik! Newbie here, under the ‘The 20 Market Depth (level 3 data) Window’ section, you’ve said – If you are entirely new to this, I’d suggest you read this blog to understand what the level 3 data is all about.
    Are you referring to this chapter as the blog or have a separate blog elsewhere, in which case I do not see a link to it. Can you help?

  5. Ujjawal says:

    Amazing featute for the reatil traders. Way to go team for bringing such innovative and pro Tools to the world at such decent costs.

  6. vinod says:

    good feature i like

  7. monicashah says:


  8. SUDHIN says:

    So this is only or those doing fno right?

  9. Suganya says:

    I have generated more than 100 Rs (Brokerage alone… But I am not able to view 20 depth data…

  10. Munish says:

    “view 20depath” is not being shown in market depth on my pc

  11. Rajan says:

    I think analysis based on visible quantities is misleading as there is feature of disclosed quantity. The numbers in market depth do not paint the full picture. Correct me if I am wrong.

    • Karthik Rangappa says:

      If you think about it, the 20 market depth is an indicator of liquidity – both in terms of contract availability and the spread. If the order is a disclosed one, then it only improves the liquidity situation right?

  12. udaya Kothamasu says:

    Am not able to see the 20 Depth

  13. Pramod says:

    Thank you, This is good information made available

  14. Rajhamsan Iyer says:

    Excellent article!
    I am a new to intraday trading and was exploring the 20 market depth; apparently Zerodha is watching what I am doing since I got a pop-up asking me to read this article!
    Thanks for the information; will try to use it.

  15. bhaskar says:

    Hi karthik,
    All are fine, but how to enable or see 20 level depth…
    I could not able to see any article or link or after logging 20 level depth option.
    I have generated more than 10K brokerage but still nothing is seen.

  16. Arindam Roy Chowdhury says:

    Hi Karthik,

    Excellent insight for RTs.
    Kudos to your efforts in improving Zerodha always! Goodluck in your future endeavors as well.

    Best Regards,

  17. Brahma says:

    sir,in nifty future range example you highlight offer side of order book and telling about bits.I think there are more sellers at 11980 level.So price will come down na…please clarify..

  18. rajinikanth sangam says:

    view 20depath” is not being shown in market depth on my pc, please let me know sir.

  19. ASHMEET SINGH says:

    A speechifier should know how to make his listeners understand and Sir you are best at it πŸ‘

  20. rajinikanth sangam says:

    20 depth

  21. Brahma says:

    sorry its “bids”…not “bits”.

  22. Harshendu Gor says:

    when it will be available for commodity trading

  23. Shyam says:

    Nice article.. you guys have made a mistake though. The bids are on the left and the ask(offer) are on the right. Surprised such a basic mistake being made by a brokerage company!

  24. KAMALAKAR WAD says:


  25. muthu says:

    great support for us thanks zeroda

  26. Shriappi says:

    Hi Team, when soon we can expect this feature in commodities ? any deadline your working with ?

  27. Gurbhajan Singh says:

    Dear sir, Pls email me this article I need this for trading. OR give me link from where it can be opened.

  28. tarak says:

    No doubt, this is valuable, but how much. Liquidity can vanish in micro secs with computers putting orders in and out, Can a human eye catch this variation?

    Tools such as bookmap Or jigsaw can only help along with 20 depth. Unfortunately, we do not have those in India.

  29. neeraj says:

    Instead of showing all 20 price levels, Can you please display only those price levels which are in the top 10 in bids and offers side?. This will make it clear where are the supports and resistances. This is especially useful in the case of nifty and banknifty where 0.05 price level makes it almost useless, because we can see only at a distance of 1 rupee with these 20 levels.

  30. DFW says:

    Hi Karthik,

    Appreciate this new feature- thanks; it’s most certainly preferable to just seeing the top 5 bid and asks, but in my experience, I do find that the level 2 data can often prove to be something of an illusion especially in the function of establishing supports and resistance. Often you find a strong quantity of bids and ask at a certain level and prima facie you’d think those levels could be crucial but as you move closer to those levels, invariably the bids and asks just disappear from the table. I’ve read somewhere that this is often the smart money looking to trap the retailers like me and send the stock scurrying the other way cause there’s nothing quite like having trapped positions in driving momentum the other way.

    • Karthik Rangappa says:

      Well, bids and asks change, that’s the very nature of this beast. You need to evaluate how the order flow hits at these key price points. Need not necessarily be for that given moment.

  31. Uday Kumar says:

    Why is it called level 3 data? Are there any level 2 & level 1 data exists, if so what are they?
    I presume, level 1 data is usual LTP, OHLC and vol, level 2 data is top 5 bid & ask data..

  32. Anil Chauhan says:

    100 Rs as a brokerage on daily basis or on a monthly basis, please clarify.

  33. Narayan says:

    Thank you for the wonderful blog. My concern is when max quantity 2250 placed at [email protected] for selling then how it is giving conviction to go long or bullish breakout. Could you please elaborate.

    • Karthik Rangappa says:

      The quantities keep changing, you need to see how the bids are getting paced at that level. If the bids are continuously higher at that point, then you develop more conviction at that price point.

  34. naween kumar says:

    Good day sir very nice i m using this feature best & solve my all problem & idea for market im happy

    Thanks to zerodha & All Teem

  35. sandeep says:

    Dharma’s query is a valid query as even I am confused on the nifty example ..At 11980 there are more price should go down…how it has gone up…pl. help to explain. Rgds Sandeep

  36. om thakur says:

    Great tool for scalping… and I hope this is only free for some time

  37. ASHOK MUKHIYA says:

    sir, in commodity section, it is not visible!

  38. Amitesh says:

    In the range breakout example its not bid that are concentrated….offers are concentrated right?…..if its ture should i still look for buy?

  39. neeraj says:

    Hi Karthik,
    I had written the following suggestion yesterday, for which you had replied that I can choose to see only the Top 10. I am not sure whether you have understood my question. I meant Top 10 in terms of “Quantity”.

    Once Top 10 are identified they can be shown in the order of the price itself, as it is done today (Intermediate prices where the quantity is low will get discarded). The displayed items need not be rearranged in terms of Quantity.

    This may slow down the refresh rate somewhat but I think it should not matter, as it gives valuable information.
    This was my previous message:-

    “Instead of showing all 20 price levels, Can you please display only those price levels which are in the top 10 in bids and offers side?. This will make it clear where are the supports and resistances. This is especially useful in the case of nifty and banknifty where 0.05 price level makes it almost useless, because we can see only at a distance of 1 rupee with these 20 levels.”
    (( I could not reply to your message there and so I have created a new message here))

    • Karthik Rangappa says:

      I’m so sorry, I didn’t quite get what you were saying initially. This is quite clear. This could be quite complicated in terms of tech and of course, the refresh rate will take a hit. None the less, I will check with the team.

  40. John says:

    Hi Karthik, Thanks for providing one more excellent tool for better decision making. I just have one question. I understand that this data (20 level depth data) is dynamic. So how much that we can depend on such data that is dynamic in nature?

  41. Rajkumar says:

    How to access it on kite mobile

  42. Amitesh Patel says:

    yes that’s right…..but there are a lot of sellers there so is it a nice idea to go long after that level breaks?

  43. Bijoy kumar padhi says:

    In the last example there are 18 orders in the offer side total 2250 quantity. is this means that bid is concentrated there(11980)
    2250 quantity are in sell side?
    would you please clarify this there must be problem with my understanding.

  44. Parendu says:

    In the last example, when there was highest bid at 11980 on sell side, it should imply that it is the resistance and market may not go up from that level. But the inference has been made reverse here. Can you please elaborate ?

  45. Ashish says:

    Hi Karthik,
    You wrote ‘The bid concentration is the highest at 11980’, shouldn’t it be Offer instead of Bid, maybe a typo. And since 11980 has highest offers, wouldn’t it serve as supply zone rather than support.

  46. HD says:

    Is this feature provided through Kite connect API? I checked the depth that we receive in Ticker data and we are still getting 5 levels of market depth and not 20. If not yet part of kite connect API, any plans in future? Also, will there be any additional charges?

    Thanks in advance.

  47. Sandeep Ganju says:


    As always, an excellent write up.
    A basic question from my side. For a Nifty 12000 CE trading at 111. Suppose a trader has placed 4 sell orders with 1200 qty at 135 and he is the only one who has placed sell Call orders at 135 level. The trouble is that he has disclosed 0 qty. In this case what would appear at 135 CE sell side level. Pls remember that hypothetically these are the only orders placed at 135 CE sell.

  48. Prithvi Raj K says:

    I was wondering how this was helpful. This article makes a lot of sense.

    A webinar on the subject would be fantastic.

  49. Hemant says:

    Sir, At what one should focus on number of orders or at Quantity in market depth while making decisions for intraday trading.
    which is more important to look at order or qty. ?

  50. Kay says:

    Hey Karthik!! I sincerely appreciate all the effort that was put into making these modules, they are very very informative and awsome.
    The content is really great, Thank you and varsity for curating the concepts and information into one place,
    And one other thing, does zerodha offer
    “time and sales ” data??

    • Karthik Rangappa says:

      Thanks for the kind words and I’m glad you liked the content here. We provide OHLC and volume data, which is time-stamped. Guess this should suffice?

  51. Kay says:

    Yep! That’s good enough, thank you

  52. Sakrayya Raichur says:


  53. Sanjay Kumar says:

    The logic to trade the long in Nifty was the presence of huge sell order at the resistance? I didn’t understand the trade.

  54. Jay Pitale says:

    Hi Karthik , firstly thx to u n Zerodha for getting this to us. Secondly the concern arnd the brkout eg. I believe the wordings hav confused many including me. 2250 being the highest in offer(bids to sell if i may so) shd be the supply zone and act as a resistance from price pt. So either we see it as a temp resistance or enter in a trade only if this price pt breaks on the upside. Correct if that is what u meant. Thanks

  55. Adarsh says:

    Brilliant analogy of car parking assistant! We’ll written article.

  56. Arvind says:

    I think the traders who had place sell order @ 11980 will keep the stop loss above 5 to 10 points i:e 11990 ,once the price starts moving above the level, they will panic to exit (buy) ,this will lead to breakout due to dual price action. we should place a buy order above 11990 with a stop below 11979.

  57. Kalpesh Sharma says:


    Great article and very useful. However, kindly correct the last example shown for validation of range breakout. It shows offers and you have traded assuming it to be bids. If there were multiple offers at 11980 then logically breakout shouldn’t have happened.

    Please correct me if I am wrong.

    Thanks and Regards

  58. Rahul says:

    20 market depth is not available for MCX?

  59. Prashant says:

    20 market depth is not working in pre market session i.e. between 9:00-9:15.

  60. Amitesh gupta says:

    Hello Sir, Please tell me the Market Opening Timings.

  61. MONIRUL SEIKH says:

    hello kartik sir
    i did not understand nifty future 15 minute intraday breakout concept.there was 2250(highest quantity for sale) quantity for offer at 11980 price did you say there was a breakout probability?

  62. monirul seikh says:

    ok sir ,after relook please clarify this concept

  63. Komal says:

    What is the difference b/w bids and orders? I am so confused

  64. Murthy says:

    Thank you so much Mr Karthik for the gnan you are providing.

    Is there anyway (since price action movements are very fast) to view all the different data like Technical/Fundamental/Quantitative analysis, Market Depth etc to build a strong case for a trade quickly? Is Zerodha or any other software telling all this information in a single click?
    Also since POV is different before the market starts, but after the market is open, is there anyway to know the trend change?

    Appreciate more information like articles/books/software on this would be greatly appreciated

    • Karthik Rangappa says:

      Kite gives you both technical and fundamental data. For basic fundamental data, click on the stock widget that appears when you hover over the stock name in Kite’s market watch. You cannot know the trend change before it happens.

  65. Ismail Lukade says:

    Someone please help me with this. Above the writer of this post said, “The bid concentration is the highest at 11980; in fact, this is the highest in across both sides of the order book. So this gives me the conviction to go ahead and place my long trade.”
    but it is not the bid, it is the offer i.e the seller is asking so when the LTP reaches here the price should fall right? bcoz selling is more and demand is less. So, how he continued on the long?

    Please explain the chart.

  66. Murthy says:

    I know that Karthik. But we need to visit different places to get different data which might be time consuming.

    Any thing in Kite or other software we can see most of the data in a single page to take a quick call? Like Technical Indicators, Levels, moving averages, oscillators, Pricing details of previous days, fundamental details etc in a single page

    • Karthik Rangappa says:

      All technical details are available, either on tradingview or ChartIQ. Fundamental is to the extent of what’s available by smallcase by means of a widget. I’ll anyway pass this feedback anyway.

  67. shrikant kotalwar says:

    not show market depth on stock why?

  68. SS0384 says:

    is it available in commodity market data?

  69. Raju goswami says:

    Thanks you very very much sir

  70. Vijay Patil says:

    More than 100 Rs as a brokerage on last 10 days but not seen my account (Daily 80 rupiees in equity & commodity), please clarify.

  71. Nitin says:

    I already generated more than 100 revenue , Still cant see 20 level Market depth

  72. Ankit says:

    I definitely would be generating 100 rs for brokerage but I don’t see this option. Please help.

  73. Sanjoy says:

    When will it be available for all please (irrespective of Brokerage amount)?


  74. Elan Dev says:

    All are ok when it possible dark or night mode in training view

  75. Tilakash Dutta says:

    From watchlist how can I use the 20 market depth. I can’t find the option 20 market depth on my Zerodha Kite app

  76. Udaya says:

    Is it available on smart phones as well..?
    I trade on phone.. I this option was not displayed to me and yes I’ve generated brokerage of more than πŸ’―

  77. Harish says:

    Hello Karthik,
    As usual, get work and keep it up. I was unaware of this feature until now and hence would use to validate my intraday trades.
    Can this be used for positional or swing trading?

  78. Arun Chugh says:

    Appreciate for such out of the box ideas for retail traders….I will start using this and see what I gain….

  79. Dibyendu says:

    Sir am I eligible for this feature?

  80. Ravi Raghavn says:

    i will be more beneficial and productive if it plotted on the chart we trade as support and resistance according to 20 level market order depth.

  81. Kishan Ghetia says:

    Where to find this option? I am still saw old type of market depth only.

  82. ATHAR SAYED says:

    Is it available in currency features and options 20depth

  83. ChetanP says:

    Thanks for adding this feature. By the way, can you please tell what the background colour of the QTY column mean. At each price point, buy or sell, the background colour of the respective QTY, is of different length. As far as i can understand, the length of the background colour, neither indicates the number of orders for that QTY nor the bur or sell quantity itself. I am sure there is some logic to the variable length.

  84. Amit says:

    Interesting, does total bid for buy and sell gives some clue about overall ternd for the day??

  85. N S V IYENGAR says:

    20 depth is not visible in USDINR

  86. John says:

    Level 3 or 2 is useless unless these data can be imported into tools like ninja trader,jigsaw.i had requested for a bridge for kite and ninja trader ,I was ready to pay for the bridge but I was turned off,your support team said I will have to develop it my self,I am not from IT background so it is not possible for me to develop the bridge,in short level 3 is useless ,in fact it will do more harm by using it without the tools

  87. Suresh Banne says:

    The feature is really good.
    But I have a suggestion, can zerodha implement top 50 gainers and losers.

  88. John says:

    Zerodha is just fooling people,if they really want to help then at least they should provide the bridge for connecting kite to tools like ninja trader

  89. Sai Vivek Edla says:

    Hi sir,
    Thanks for such a nice initiative. Pray and hope we make best use of it and get the benefits.
    However, is there an example of how retail investors can use it to avoid being stoploss hunted.
    Also, is it only for Shares currently. Not seeing for CrudeOil.
    Thank you.

  90. R Deo says:

    How can saw 20 market dept

  91. Pratik Sable says:

    I had generated more than Rs100 brokerage but still I can’t see 20 Dept

  92. Kiran Shetty says:

    Hi Karthik,

    A Newbie this side, as per my understanding, as a buyer I should be looking at the offer price section right? If yes, I would always look at the lowest price to buy the shares, and the lowest price is always at the row 1 of the offer section, in that case how is the rest of the data in the other offer section rows helping me to buy the shares? Please help me understand this

  93. Somesh Gupta says:

    Is it Availabe on Pi ?

  94. Kishan Ghetia says:

    Hello Team Zerodha,
    My currently paid brokerage is more than 100 rs in this month but still not see this option

  95. nprosys says:

    Sir may I know who to get this 20 depth figures real time data into excel or google sheet.
    Can you help me!
    Thank You.

  96. nprosys says:

    Sir, I have my Demat and trading account with you.,
    I need your help to get this level 3 depth data into excel or google sheet table.

    Please advice me how to pull it.

    Thanks again!

  97. DABHI says:

    If I have my brokerage with in FEB 2020 is above 100 but what if, If i fail to pay the same brokerage next month. Will my account he out of the factility

  98. vicky says:

    Hi Zerodha Team,

    1) 20 level data only beneficial when you can save as a historic order flow data for future use else no one can make decision basis on 20 level data or 5 level of data.

    2) As you already having 20 level bid ask data, Can zerodha provide historical order flow levels,real time order flow via heatmap like Bookmap providing.

    3) Can you please provide cumulative delta and AVWAP in kite?

    • Karthik Rangappa says:

      1) Depends on your trading strategy
      2) This is not possible, I will anyway check with the team
      3) For the delta bit, I guess you can check with Sensibull team. Maybe they can.

  99. Abhishek says:

    Hey man !
    I just want to say, Thank you.
    I’ve been reading a lot of investment books but I was still overwhelmed about trading. After carefully going through the first full chapter. I am a lil bit confident to get onboard now. Thanks to your well written and superb simplified examples it was easier to grab on.

  100. vicky says:

    Hi Karthik,
    Can i get kite 20 level data in google sheet or in excel or in Json format to my analysis.? Also will you provide any kite API to consume this 20 level data to another platform ( even with some pricing model like per user billing ) ?

  101. Shubham Gacche says:

    great information karthik…please keep us updated with such tools and information πŸ™‚

  102. Amit Bhasin says:

    Hi, Is this available in MCX also.

  103. Ravi Sharma says:

    Tis an incredible tool not only for perfect scalping but a good intraday swing trade can be executed with a limited sl. I really appreciate the effort Zerodha has taken to take our broking industry to next level.
    However sometimes I feel a problem when level 3 gets stuck and if youre in the middle of trade that too in a large turns out PAINFUL. I shouldn’t whine though.

  104. JPS says:

    the 20 depth move so fast one ia not able to grasp the content. what is the remedy

  105. gaurav bhootna says:

    Sir if i want to invest in a fmcg company….
    So i need to study the fmcg sector….
    So how to study that particular sector ..
    I mean what are the sources to study a particluar sector?

    • Karthik Rangappa says:

      Pick up the annual report of an FMCG company and start reading it. This is the best way to develop a sense of whats happening in the industry.

  106. gaurav bhootna says:

    apart from annual report how can i get knowledge of that particular sector?

    • Karthik Rangappa says:

      You can look for sectoral reports from the industry body. For example, SIAM is the industry body for auto, TRAI for telecom, etc.

  107. Aravindhan Ramesh says:

    Hello Zerodha team, Nice article about bridging the ‘informational assymetry’ gap for retails traders! Thanks for making life easier for retail traders. Quick question: It seems like Level 3 data is mostly useful for intraday trading or short term trading. How is this useful for long term investors?

    • Karthik Rangappa says:

      You are right, level 3 is mainly used for intraday trading/scalping. It is of no use to long term traders.

  108. Sandeep Rawat says:

    Sir, your material and practical approach is even better than an MBA college. This material has given me more knowledge than my college. Why don’t you launch your books for CFA, FRM….

    • Karthik Rangappa says:

      Happy to note that, Sandeep. The current focus is to develop content to help the trading and investing community at large, so hopefully after this goal is done πŸ™‚

  109. Teja says:

    Karthik, Nicely written in simple terms a very good refresher of jargons and Knowledge. Examples were relatable, 20 market depth level 3 analysis is slightly confusing for me. Considering I’m a retail investor its a good to know not a must know.

    Thank you for the material. All the best

  110. Rajan Margan says:

    Hi Karthik Sir,

    I must say my foundation for trading started with varsity, i am glad i came to know about varsity which has the knowledge shared by a person like you with vast experience in trading & investing, how simpler can someone make the concepts of trading & investing understandable to others so that even a person like me could understand about it atleast to an extent, it was after reading the topics in varsity i was able to understand the terminologies used in trading & investing when i read a book or when others are talking about it, it really helped me to learn gradually and explore things which i really needed, 20 market depth is really useful tool for me when i combine it with VSA concept sir, hope you come up with an elaborate topic on VSA in trading thank you sir

  111. Rajan Margan says:

    Yes sir

  112. KARN says:

    could 20depth data be used to identify the trend direction ? Bullish or bearish , can number or volume of bid/ask suggests direction of trend ?

  113. Himanshu Joshi says:

    hi karthik sir,
    is there any knowledge needed to understand this whole topic coz i’m finding difficulties in understanding this concept.
    Will you please help me gaining right knowledge
    seriouslly i didn’t understood a single point in this

  114. Ritik says:

    completed 1st module. was very knowledgeable and easy to understand. hope these pace is through out the course.

  115. Rekha.B says:

    Hii Karthik sir,
    Ur articles are soo great!, infact I got lot of information related to tarding and investing frm varsity zerodha…

    I am newbie in stock market…
    I wanted know more about how to calculate intrinsic value in depth…
    Can u pls suggest any blog so that I can access to it….

    And, if I want access historical ratio’s where do I have to search for it?

    • Karthik Rangappa says:

      Rehka, I’m glad you liked the content. YOu’d like to calculate intrinsic value of which one? Stock (fundamentals) or options?

  116. Pratik D says:

    Hello Karthik Sir,

    I have just started reading from module 1. Just need to know how this chapter of supplementary note can be a part of introduction to stock markets. Because, a person like me who have just heard of options but dont know of it is reading this chapter will be confused. I think this chapter must be part of F&O section is what I feel. Do comment back.

    Also, need a small guidance from your side. I am daily looking around various videos, attending various webinars and reading various books on trading and investing. I am a bit of confused somewhat and when I go in live market I feel like what to do now even after reading and watching so much. What should be the best approach to avoid this and be consistent in trading and investing. Any inputs from your side is valuable to me

    • Karthik Rangappa says:

      Pratik, yes, what you say makes sense. I included this chapter here thinking that this is a feature on the trading terminal. Too late to move, but will add a disclaimer here.

      I understand that it can get overwhelming. Set yourself small goals in the market and try to focus and achieve only that. For example, goal for day 1 can be to figure out how to place a market order, the goal for day 2 can be to figure limit order, day 3 may be to read how bid-ask changes. Do this for a month – small learning objectives on a daily basis and after a month, you yourself will feel that you’ve learnt quite a bit. If you have any queries, feel free to ask us.

  117. Rekha.B says:

    For fundamental..

  118. Kaushik says:


    this feature will likely save from excessive stop loss hunting in intraday also. I just started micro trading and now i know how to save myself from stop loss hunting…

  119. Priya says:

    Dear Kartik,

    Is it better to trade in options or trade big quantities in intraday?

  120. Asif Shaikh says:

    What do you mean by Contract availability ? Can you please elaborate.

    One value addition to this web Page can you put the post comment tab above the comment & discussion area.
    since a person has to come all along down to post.

    • Karthik Rangappa says:

      Contract availability = liquidity. Basically you should be able to easily buy and sell the contract. Thanks for the suggestion, Asif, I will bounce this to the tech team.

  121. Parth Singh Pal says:

    What is meant by spread of 0.149%?

  122. Soummodeep Bhadra says:

    Sir can you please explain how to use market depth data…how to interpret it in live market

  123. Pratik D says:

    Hello Karthik sir

    Firstmost, you have been active in replying all our queries, so a big THANK YOU. I would like to ask here that I have been into stockmarket from 2017. Till 2019 , I have been doing gamble around and lost many lacs. It was in this year I decided to learn complete ly in stock markets and then Invest. So even during gambling, I took aroung 1% knowledge. Now in last 2 months saw various vedios, webinars, learned multiple startegies and all but have not gone into basics of technical analysis, fundamental and all. I know how MACD works, what is MA, Bracket orders, MO and etc. as this are shown in every videos. But somewhere or the other in heart, I feel something is still missing and I may have taken giant step rather than micro step. . You may highilght on this. In this , I sold all loss making stocks which were 90% down in portfolio just to see them rise in next one month. I did this to release some funds but still feel like I should have waited. So please guide me what to do in all this current scenarios. In this market, you have so much to read and see, how do I start is the biggest question since I already know things that are advanced as said earlier. Can zerodha modules help me in this. Am I doing too much or too less is also a question here

    • Karthik Rangappa says:

      Pratik, this is exactly how one starts, so don’t get worked up πŸ™‚
      At a stage, you’ll figure that you know things but everything is scrambled. You need to connect the dots and ensure there is an order in this madness. You will find this order only with more market experience and by going through multiple market cycles. Until then, reduce your capital exposure in the market and trade with sums which will help you validate all the learnings in the market.
      Good luck and stay profitable πŸ™‚

  124. Jude says:

    Hello Karthik sir,
    Thanks so much for the lessons on stock market. Please I wish to know if someone in Africa can trade in the Indian stock market and even that of other countries.
    Thanks again as I await your response!

  125. Ajit says:

    I couldn’t have expected a better explanation and usecase of 20 market depth. This would definitely help long way.
    Thank you so much !

  126. R J Kalingaraayan says:

    Very nicely explained. Very easy to understand

  127. MOHAMMAD ASHRAF G says:

    Very elaborate content. learnt a lot guys, thank you. keep up the good work.

  128. Aditya says:

    I am writing about the message from Neeraj on November 9, 2019. The reply button does not work for some reason, hence posting a new message…
    I totally agree with what Neeraj is requesting. Whole point behind 20 depth data is to identify high volume bids/offers and then use this info to either identify SR levels OR to identify the price spread of your market order. The rate at which the level 3 data refreshes makes it very difficult to process this. Instead visibility to top 5 or 7 levels with highest volume on bid/offer side would be really handy. Please check the technical feasibility of providing this.
    Very happy to see you providing level 3 data already… but yeh dil mange more πŸ™‚

  129. prem says:

    sir, i didn’t understand why to place SL order at 1290 in above example.

  130. Harsha Kunjathbail says:

    Hello Sir,

    This is a nice initiative. Kite connect API are providing level 2 data as of now. Is there any plans of providing level 3 data through api’s??

  131. Harsha says:

    Oh.. Ok. Np πŸ™‚
    Can u kindly make me understand the reason behind it??
    Is it because of bandwidth issue or are there any regulations restricting it? Because since you are providing level 3 data(eg : depth upto 20) on kite application what is restricting you do the same for api?

    • Karthik Rangappa says:

      No, not bandwidth issue πŸ™‚

      If there is lack of liquidity, then it does not matter which one you look at – top 5 or top 20, the order book will be empty πŸ™‚

  132. Pamarrendra says:

    Why this facility is not available in BSE

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