Module 1   Introduction to Stock MarketsChapter 15

Supplementary note – The 20 market depth or level 3 data

View chapters →

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

    • Karthik Rangappa says:

      Assuming you are eligible for the 20 depth, I’d suggest you click on the market depth and then on the 20 depth.

  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. Amit says:


  84. 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.

  85. Amit says:

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

  86. N S V IYENGAR says:

    20 depth is not visible in USDINR

  87. vijay says:

    nice job

  88. 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

  89. Suresh Banne says:

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

  90. 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

  91. 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.

  92. R Deo says:

    How can saw 20 market dept

  93. Pratik Sable says:

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

  94. 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

  95. Somesh Gupta says:

    Is it Availabe on Pi ?

  96. Kishan Ghetia says:

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

  97. 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.

  98. 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!

  99. 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

  100. 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.

  101. 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.

  102. 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 ) ?

  103. Shubham Gacche says:

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

  104. Amit Bhasin says:

    Hi, Is this available in MCX also.

  105. 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.

  106. JPS says:

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

  107. 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.

  108. 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.

  109. 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.

  110. 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™‚

  111. 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

    • Karthik Rangappa says:

      Happy trading, Teja πŸ™‚
      Yes, this is good to know and not really required to move forward.

  112. 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

  113. Rajan Margan says:

    Yes sir

  114. 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 ?

  115. 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

    • Karthik Rangappa says:

      Start from the first chapter, Himanshu. Let me know if you are stuck anywhere. Will be happy to help.

  116. Ritik says:

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

  117. 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?

  118. 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.

  119. Rekha.B says:

    For fundamental..

  120. 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…

  121. Priya says:

    Dear Kartik,

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

  122. 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.

  123. Parth Singh Pal says:

    What is meant by spread of 0.149%?

  124. Soummodeep Bhadra says:

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

  125. 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™‚

  126. 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!

  127. 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 !

  128. R J Kalingaraayan says:

    Very nicely explained. Very easy to understand

  129. MOHAMMAD ASHRAF G says:

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

  130. 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™‚

  131. prem says:

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

  132. 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??

  133. 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™‚

  134. Pamarrendra says:

    Why this facility is not available in BSE

  135. Himanshu says:

    When I downloaded the pdf for different, I found that few chapters in many modules are not included in the downloaded pdf. Is it a bug or is it going to come into the pdf in the future?


  136. Pratham Gulati says:

    Sir i am not able to understand this concept of market depth 20 and how it can benefit me in trading please explain


    completed the first module. it really helpful for new traders. thank u sir.
    i have a doubt
    if number of total bids are more compared to total offers in a share , then that share will form bullish and if it is vice versa means stock moving bearish. Is this really true?

    • Karthik Rangappa says:

      That’s not true at all. In fact one of the most common misconceptions in the market. I’d suggest you ignore it completely.

  138. Yatesh says:

    Hello Karthik, compliments for the quality and simplicity of the write up.

    Any updates on the depth 20 for commodity?

  139. Jayntika says:

    Hi, Karthik… Thanks a lot…
    I had started few days back and reach up to here. You had not told anything about finding of S&R level.
    Can you brief something on that or does we have separate module on S&R level finding?

  140. Rishi Ganguly says:

    Dear Karthik,

    I know this may sound silly but i am not able to understand the pictures which have the blue and the red text on em. If its not too much, could you explain it to me in much simple terms?

  141. Dinesh says:

    Regarding the usage of this data for placing options trading.
    Does that mean, if I put limit buy order at the prices shown in offer, then that would be fulfilled? or would the order be first full-filled for the lowest offer first?
    What would be a trading strategy in such a case?

  142. Mihir Bindal says:

    Chapter 15 is not integrated in Module 1 PDF. Same is with some other modules as well. Can you please fix??

    Thank you

  143. Arshad says:

    You have given to look from another perspective and I have applied it today it works 110%. Thank you for sharing this gem!

  144. Mihir Bindal says:

    Hi Karthik, I saw on this particular module and some others, that the number of chapters mentioned in the module, all of them are not coming in the pdf. A couple of chapters are missing in some modules. Anyway you can fix this please?


  145. Mihir Bindal says:

    Please let me know when will your team fix this patch. I will then download the pdf’s accordingly.

    Thanks & regards

  146. Aman Nahar says:

    Sir, Can you please clarify that If some one writes false information in disclosed quantity how can we truly understand the actual size at that level ? For ex- an Ask size at a price 100.0 is showing 350qty but actually the seller placed order to sell 500qty. He disclosed 350qty only making the size small.

    Please correct me If I am wrong some where

  147. B Krishna Sagar says:

    Any plan on adding prints to the level 3 data feature.

  148. Krishna Sagar says:

    Prints show the buy orders and sell orders executed in a separate window.If bid orders are repeatedly printing with lower prices the stock price is coming down and vice versa.I think foreign brokerages show the trades executed in a separate window.Also called time and sales if i am not mistaken.

  149. Krishna Sagar says:


  150. Prateek says:

    need API for kite connect for data , to apply own strategy , is it possible?

  151. Ismaila shuaibu says:

    I want more on level 3 in f

  152. Gururaj.s says:

    Is it possible to check view chart and market depth on mobile kite in single screen.

  153. Anil Giri says:

    I think even though disclosed quantity may not give the actual numbers for an offer or say 100% accurate info, the quantity across all the 20 depths may be considered to have similar variance between actual and disclosed and hence, still may give us a general idea and help in utilizing the information gainfully, as intended in your article.

    • Karthik Rangappa says:

      Hmm, the objective of disclosed qty is to not give the accurate order info, else oy would defeat the purpose πŸ™‚


    hi I am a ca student with very much interest into the stock market would it be enough to start my trading after completion of these modules, and I would thank Zerodha for providing wonderful content free of cost. i would like to receive assistance from you to enter into the market .

    • Karthik Rangappa says:

      Yes, this will help you to some extent. But your real insights will come from real trading experience πŸ™‚

  155. Sharad Kumar Jindal says:

    Very informative. But for retailers it seems not so realistic to use it. Market changes in seconds and one should have at least some time to analyze.

  156. SB says:

    In the market depth data what does the color(blue or red) on the numbers inidicate. Like in the above example of Seimens, some data is shaded in blue or red depending on Bid or Offer data.Further some data is partially shaded and while others are not or completely shaded.Please clarify.

    • Karthik Rangappa says:

      Blue is the price at which you buy and red is the price at which you sell. The shaded part indicates the quantity available.

  157. shivkumar says:

    Thank you for clearing this basic concept…cheers

  158. Pradeep Pradhan says:

    Please add volume in it if possible or we have to use chart to check volume at saturated levels.

    Pradeep C Pradhan

  159. Mohit Srivastava says:

    You mentioned – “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”

    Has the image been changed as bids are on left while offers are on right. Not that I want to point out a gap but I just want to be clear with all the terminology being used here

  160. Parul Goyal says:

    Me and my mother were discussing about tata chemicals and we found that near the start of 2020 the prices shown by different platforms like moneycontrol , kite ,tickertape and trading view do not match.
    Please check why is there difference in prices shown by different platforms , and which one’s data is right.

    • Karthik Rangappa says:

      Are you sure you are checking EQ series? Prices cannot differ. Or maybe there was a corporate action and that dint reflect on other platforms?

  161. Dhananjay says:

    Can k but or well stock in point means for example A company share 831 market price i want to sell it 834.5. is it possible in zeroda.

  162. KUNAL says:

    Thank you so much! reread is another form of practice and this will help in long run to understand the market for newbie.

  163. Manish Dahal says:

    Is the “total” in Bid/Ask chart is Bid/Ask Volume? Bid/Ask Volume is the number of shares changing hands, Am I right?
    if the Bid volume is double than Ask volume, price is likely to go down?
    If the Ask volume is double than bid volume, price is likely to go up, is that Correct?

    Thanks in advance.

    • Karthik Rangappa says:

      Manish, it is very hard to conclude the direction of the price based on bid/ask since the bids and asks keeps changing every second.

  164. Manish Dahal says:

    Okay, but I think we can guess based on bid/ask volume ratio.
    Is the “total bid” in the above chart means the volume of shares that is sold to bidder, or is it only the bid offer that is not traded yet? Please clarify this one.


    • Karthik Rangappa says:

      These are the quantities available to trade at this moment, it can be traded. But remember the traders can cancel these trades before they execute.

  165. Sanket_ says:

    Is there any certificate available to complete this course?

  166. Sohail says:

    Hey the 20 market depth visible on a stock is order placed in the market server or at Zerodha server???

  167. Neeraj says:

    This 20 market depth data does help in identifying support & resistance in intraday trading… This can be used in conjunction with chart(minutes based) in the background on Kite….
    Would be very useful if traded in high volumes.
    Thank you team Zerodha for providing this facility for retail tradersπŸ‘
    Keep developing & incorporating new software technologies on your platform πŸ‘

  168. vikky says:

    I can still see numbers under market depth.. after trading hours .. what does they indicate?
    …ya I am new to this field

  169. Gautham says:

    Thanks – worked like a charm! Just read it yesterday nite & used it today & works to the T!!

  170. Franklin Loyola says:

    Hi Sir,
    I would like to ask a doubt regarding a statement you told in the comments section : “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.”

    What is meant by a disclosed quantity and how will it make the liquidity situation better?

    • Karthik Rangappa says:

      Not really because disclosed quantity never gets exposed in any order book. It is like buying wanting to buy 5 chocolates at a shop, but you keep buying 1 chocolate at a time, the shop keeper will not know how many you really want but will keep selling you 1 chocolate every time you ask for it.

  171. Divyanshu Pandey says:

    thank you zerodha…

  172. G Karthikeyan says:

    In Zerodha, 20 market depth cannot be seen in currency derivatives and commodities. can you pl guide how I have to go for it in Zerodha.

  173. Ashok Srinivasan says:

    Excellent content !!! Simply fabulous !!

  174. tej says:

    Thanks Karthik that was pretty simple one. And I thought derivatives were tough one. Need more clarity on each topic ahead. Tha ks again.

  175. vishal sharma says:

    hello, how i could get the certificate of your course.

    • Karthik Rangappa says:

      Please download the app, its available both on iOS and Android. The certification is available there.

  176. Gaurav Saha says:

    From the above examples i have some doubts….
    1. When the current of the scrip is at 1313, then why should some one place buy orders at 1290, 23 points away on an intraday basis.
    2. Also the stop loss and profit target are two large… And it may not be possible to reach in intraday…. So the orders which are not executed will open for the next day also.

  177. Priyanka says:

    Very nicely explained.

  178. Ridhi jain says:

    Sir, are you going to add financial modelling as a module in varsity?

  179. Sudhanshu Tyagi says:

    thank you Karthik !
    Great job Zerodha Team !
    You guys are creating a new India by spreading financial awareness.
    will try to join your revolution somehow πŸ™‚

  180. Sivasankar Reddy says:

    It i.e level3 data is getting stucked in kites many times but 5 bid ask window working properly. Plzzz improve it

  181. Arihant Nayyar says:

    Read the first module. Loved it and looking forward to learning to trade with varsity. πŸ™‚

  182. Sivasankar Reddy says:

    It was working for equity but for options getting stucked. I will also check on Monday and let you know.

  183. Sivasankar Reddy says:

    As every one told, it is amazing feature but, I believe for options trading especially for buyers this 20 depth is not sufficient because it covers range of +/- Rs.1 from LTP. Is it possible to provide range of +/- Rs.20 from LTP in separate window ? so we can guess big move in that option.
    For example NIFTY 20th May is trading at Rs.21.75. If u provide depth for
    1. Rs.20-21,
    2. Rs. 21-22,
    3. Rs 22-23 and so on for offer side.
    What do you think, karthik ?

    • Karthik Rangappa says:

      These quotes are directly from the exhange. We show what the exchange provides, we don’t have control over this data.

  184. Pallavi says:

    Whenever i decide to buy shares for intraday, i first check the total quantity of bid and offer and if the bid side is more than offer ,i buy the shares thinking that the price will go up.idont know how this technique clicked in my mind,whereas nobody has explained abt it anywhere,but whenever i do i mostly succeed.any idea abt this?

    • Karthik Rangappa says:

      Pallavi, I’d suggest you pay more attention to the candlestick pattern than this, it is far more effective.

  185. Sivasankar Reddy says:

    Hi Karthik
    Level 3 data not getting in kite. Please check it.

    • Karthik Rangappa says:

      I think the 20-depth feature on Kite will not be available today due to a connectivity issue with the exchange colo (from where we receive tick by tick feeds through which we create 20 depth). You should be able to use the feature normally from tomorrow

  186. Harshit Joshi says:


    Should I finish every module first before starting to invest?
    Or can I just start right now and learn in the process?

    Also, any specific order in which I should follow this course?

  187. Sivasankar Reddy says:

    Hi karthik,
    Yesterday and today also level 3 data not getting. When we can expect it. Plz resolve it ASAP. Tq.

  188. Ashok Kumar says:

    I am not able to get 20 depth
    I tried several times to as mentioned phone no
    Very difficult to reach staff
    Kindly up date to me immediately
    Ashok Kumar
    Senior executive engineer

  189. Sivasankar Reddy says:

    Hi Karthik,
    So as you told, you are converting tick by tick data into 20 depth.
    1. Why 20 only, why not more than 20 which can cover more price range than 20 depth.
    2. Is it possible to get more depth if we buy API from you or in any other way
    Please let me know in detail
    Thank you very much.

    • Karthik Rangappa says:

      1) This is relayed by the exchange, btw, 20 depth covers most of the orders anyway.
      2) Nope.

  190. Ganesh says:

    is there any material to study

  191. Rakesh Kumar says:

    Zerodh team always different from other , excellent

  192. Shubham says:

    Holy Crap! I am new to trading futures and options and finally understood what “Support” prices are and how they are identified. This will surely help me in setting the right SL and Target prices! So insightful.

  193. Sivasankar Reddy says:

    It is for show off only. Whenever there is big move then it is getting stucked for even an hour also. Then what is the use if it doesn’t work in crucial time.

  194. Rohan Saxena says:

    To be honest I didn’t quite grasp the concept entirely, but I understood it to be a feature that shows more than the normal market depth window, enabling traders to make more informed decisions.

    • Karthik Rangappa says:

      Yup, that’s about right. If you are comfortable using the 5 depth, then this is just an extension to it πŸ™‚

  195. Omkar Sawant says:

    Thanks Karthik for this wonderful explanation!

  196. Laishram says:

    Sir you block is great

  197. Aradhya Kansal says:

    This is weirdly answered in a way that it’s easy to understand

  198. Deepak says:

    In case of VSTTILLERS, what’s the logic in setting SL at 1287 and not 1290? And similarly the Target at 1338.8?

  199. Vignesh says:

    Hi sir
    Great work I learn lots of things through this…
    Credits to – Mr.Rangappa

  200. Shubham Sand says:

    Hi Nikhil sir

    Thanks you for sharing the educational content with the world. Your efforts mean a lot to us.

    I have one query with regard to certification, can I receive a credential id and credential url post completing the module quiz. It will be helpful for me while sharing it in my Linkedin profile or resume

    Hope, you can help me with this.

    Thanks again.

  201. prasanth says:


  202. Val says:

    Hi, this chapter is a bit confusing to me. Is there any blog/video where I can refer to the concepts explained here in detail?
    Some things I did not understand:
    For the intraday VSTTillers trade:
    “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.”
    Why would you place a SL at 1290 or lower?

    • Karthik Rangappa says:

      Not sure if there are any videos on this topics. 1290 or lower has a maximum concentration of order, hence.

  203. Darshit says:

    Please ,make a book of varcity in hindi or english version that we can buy it

  204. Manasi says:

    Great initiative! Financial literacy is the need of the hour. I myself am new to this arena and I found Varsity quite helpful. Thank you.

  205. Puneet says:

    Hi Karthik,

    What is Support & Resistance? Is there a way to offer a better explanation of this concept.

  206. Suneesh Gangadharan says:

    Very nicely written, thank you..

  207. Jagan says:

    very well explained about the market depth, contract position, how to estimate the buying and stop loss preference, thanks lot

  208. Rajat Rajawat says:

    We often see large sums order on the lower side of the bid/ask which are pending but when their order comes closer to the execution they just fade away, is this a way by market makers spoof us?

  209. steven says:

    As 17yr old newbie to this feature , I feel like as if my brain is completely being destroyed and rewired to the opportunities this can present .
    Thank you Karthik sir.

    • Karthik Rangappa says:

      Happy reading Steven! Glad you started this at a young age πŸ™‚
      Wishing you the best!

  210. Manish Jain says:

    Have been using 20 Market depth for last years never thought from the support and resistance POV. Thanks for this amazing POV @karthik sir!

  211. Sharal says:

    Sir the third module after technical analysis is option trading in the app whereas in the website it’s fundamental analysis.which one should be followed?

  212. Chetan Bonde says:

    Best for retail investor
    Can it get on kite connect api???

  213. Maz says:

    I see the button for 20 depth sometimes, but otherwise I see 5 levels only. Why is that?

  214. rupesh says:

    needs hands on training. wld be grateful if u make a live vdo. please

  215. M. Kumar says:

    Sir please provide the hindi pdf also.

  216. Amal says:

    only limit orders will be shown in market depth right ?

  217. Vipin kumar says:


  218. Bidyut Chatterjee says:

    Appreciable article on DOM.
    This attracted me to open account with Zerodha
    but I am bit skeptical on extra charges if any
    to avail 3 level DOM facility for a new and novice trader like me.
    Thank you very much !!

  219. Vijay shanti banthia says:

    Happy Teacher’s Day,
    Learned a lot from this wonderful creations.

  220. Jazib Eqbal says:

    Is 20th market depth available in zerodha? Can I monitor it from there?

  221. Chetan Nahata says:

    I am reading about the market for the first time so is it wrong that I could understand half of this chapter ??..or should I read a few later chapters and then come back here ???

  222. harsh rawat says:

    I am beginner, and learning a lot things from this. Thanku Sir.

  223. Sasipriya says:

    Why 20 depth not working for voltas future? Any specific reason only VOLTAS not showing 20 depths

  224. Janakirao Rella says:

    really very helped to me. thank u and love you zerodha

  225. Rick says:

    What is securities? And what it’s type? Sir please explain in simple…

  226. Rick says:

    Is there any other type of securities?

  227. James says:

    Hi Karthik,

    Can DOM, be also used to partially confirm the direction of a move?

    Assumption: Stock A Might break an intraday resitance level, and may go long unitl held.

    1. What is the possible scenario happening in the DOM, will I see increased quantities of bid, or will I notice offers being filled very quickly? Or offers moving very intensely?
    2. And If I had taken a long position, where can I anticipate myself being stopped out, in other words, what would be the nature of DOM, when the price may start reversing.
    3. How can one use DOM to anticipate a reversal, when the price is trading at all times high.

    Thank you,

    • Karthik Rangappa says:

      Its possible, but this is purely for scalp trades.

      When a quick move happens, backed by heavy either bids or asks, then you can expect a lot of orders hitting the exchange, and the trend to continue. About stopping out, dont think DOM will be of much use.

  228. James says:

    A follow up comment:

    What will be the nature of DOM when the price is moving sideways.

    Karthik, what I am trying to understand is, how will the order book act, when the stock is (intraday) Bullish, Bearish and sideways.

    It would make it very ease, if you could answer questions from both the comments.

    Thank you,

    • Karthik Rangappa says:

      So the way to look at this is straightforward, look at the price, direction, and the order book in conjunction. If there is a lot of movement backed by volumes in the orderbook, then you can expect the directional move to continue, simply by virtue of a fat orderbook. But this is very transient, the very next second the dynamic of the order book may change. So the point is, any trade decision that you take based on level 2, make sure to cover that position quickly.

  229. Gaurav Misra says:

    Hello Karthik,

    Thanks for an insightful view on how to create Position Sizing through Market Depth. But just curious to understand, let’s say in the Siemens example above, where we have the Totals in Blue (1,01,507) & Red (99287), does it in anyway imply that the short term view of price action is Bullish (& vice-versa) to make our POV more solid about it being bullish to take a long trade ? Please advise accordingly. Thanks in advance, and once again Kudos to you and your team for creating absolute Encyclopaedical Knowledge for everyone on Stock Markets.

    • Karthik Rangappa says:

      Gaurav, the thing with bid-ask total is that it’s very transient in nature. It changes so quickly that it is difficult to build a fresh thesis, but you can use it as a tool to support your thesis. For short term take, you need to check the prices (price is the key driver), and then associate them with the bid-ask tally.

  230. Anand VK says:

    Excellent content and clarity.
    Thanks Karthik and zerodha for knowledge sharing

  231. abhishek says:

    very happy to complete module 1! heading over to module 2 soon!

  232. Chandan says:

    Your work is phenomenal and I am very grateful. It is my personal request to you to create a similar content on crypto and forex, or atleast suggest some source of equal value.

  233. Vishal vishwas Yadav says:

    Please give the solution of my problem.
    Many days I feel unmotivated in market and feel boring. Many days i think what I can do in market, feel hesitate in market. And loosing my knowledge is required when no trading signal . I use grand checklist but never it’s 6 point matched in signal.

    • Karthik Rangappa says:

      Feeling demotivated is a natural. Especially on days when you make a loss. But if markets are an area of interest to you, then the bounce back from the demotivated state is quick. If you are unable to bounce back quickly, then you need to reevaluate if markets are really for you. Do introspect if you got into markets out of some external pressure or compulsion. If the answer is yes, then maybe you should stay away till you feel naturally motivated again.

      Good luck!

  234. Suresh says:

    What is ojas TECHNOCHEM share price

  235. Rohit says:

    What is the difference between order and quantity?

  236. Chandu says:

    Hi sir,
    Sir can I add my Varisty certificates on Linkedin under licenses and certifications

  237. PERCY B says:



  238. jagdish says:

    i am placing a options sell order after looking at level-3 data, the price there is much higher than level-1 data but the order is not getting executed despite placing a price matching order. can you please help in understansing the price discrepancy.( it is 10-12 rs. higher)

    • Karthik Rangappa says:

      Jagdish, as you go deeper down the price ladder, liquidity dries up, which means the bod and ask spread increases.

  239. Dilshad says:

    why we place stoploss at price(Rs.1290) with which more sellers are placed order?

  240. KULJEET SINGH says:

    20 depth is very good thing but it oy show the data of ZERODHA traders not all the active participation in the share market….so how much i can be assure on zerodha’s 20 depth structure????

  241. Anupam says:

    In this supplementary useful knowledge we get to know how many order quantity are either being put for buy or sell. But how can we know or get the data for no. of order quantity which got executed squared off or bought oe sold. I want the data for executed orers. How to get it?

    • Karthik Rangappa says:

      Thats the traded quantity, and the end-of-day total volume is the traded quantity for the entire day.

  242. Anupam says:

    The provided in the 20 depth, one of them is total bids vs total offer. Now, if I am wathing this data @ 11:30 and my chart is 5 min candle then @ 11:35 total no of bid and offer that will be shown in the dropdown will be from since opening of market or between 11:30 to 11:35?
    If we have total bids and offers since opening market how can we get it for 5 min candle? ie No of executed orders (option contracts) during those 5 min chart?

    • Karthik Rangappa says:

      You just have to track the volume information, Anupam. The volume will give you a sense of how many trades have taken place for the day/moment.

  243. Anupam says:

    Can we get data of traded quantity in terms of no of buyers and sellers during live trading (in 5 min candle) ?

  244. Anupam says:

    Last question is based on, when we are doing option trading in nifty and banknifty

  245. Ishan Bhattacharyya says:

    1) I have an online trading account with Angel broking and have some equity shares of different companies.
    2) I want to open an online trading account with Zerodha.
    3) is it possible to transfer all the shares from angel broking to Zerodha online without any paperwork?
    4) I wouldn’t like to continue with angel. How can I close demat & trading account of angel?
    5) Please guide me the transferring process.

  246. Tom says:

    Hey Karthik, have you guys thought of displaying this level3 data in the form of a price-ladder?

    Its pretty weird but no trading terminal/software in India, provides a price ladder for >5 market depth, even though its a common feature outside India.

    Or you could consider partnering with platforms like GoCharting/Sierra Charts/Bookmap and provide them your level 3 data that could be displayed in DOM price ladder.

    • Karthik Rangappa says:

      Hey Tom, thanks for the feedback. I guess the team had explored the possibility of a price ladder. Let me check with them to figure out what constraints we have for not doing this.

  247. bardia says:

    Hi how can I have data level3?

  248. Chandrapalan says:

    Yes, appreciate the immeasurable value of 20 Depth Order book u have depicted as well as ur selfless style of presentation,word of clarity etc. for everything.

  249. Rahul verma says:

    Thanks sir for this information i need this kind of Knowledge.

  250. Tanishq says:

    Hey, can we have this level3 data in the form of priceladder like how fyers has(there price ladder lags like crazy though).

    Also why does the API not let us get the level3 data?

  251. Kiruba says:

    How did we end up with the 0.14% spreed.thank you

  252. Channa Keshav says:

    Good explanation, Sir
    Thank you..

  253. pankaj prajapati says:

    i guess if we need to understand this module first we need a good clarity on the future and options .

  254. Pradeep P says:

    Hi Karthik, just out of curiosity – Does Zerodha have to pay extra to the exchange for obtaining this level 3 data?

  255. Suraj Gupta says:

    Great Start For Who Want To Be In Stock Market For Life Time πŸ”₯Thankyou so much πŸ™

  256. Kamaraj says:

    hi sir..
    can you please explain me about bid and offers, And how this details will be helps to trade.

  257. Shreya Shri Pradhan says:

    I sincerely appreciate all the effort that was put into making these modules. They are very informative and easy to understand. Learning about the markets has become fun because of the way concepts are explained here. Thank you sincerely to the team and people behind it.
    You’re literally feeding our minds one module at a time.

  258. Prashanth says:

    Do we also have details of the type of traders (institutional/market makers etc) that are buying and selling a stock like in Nasdaq Level 2 data.

  259. venkatesh says:

    sir i actually didnt understand this chapter much. do you think i will better grasp this after i read the TA module

  260. Manikanda Prabhu says:

    I have completed module 1 and I have gained so much information about the markets
    Thanks for your wonderful insight

  261. Disha says:

    Is 20 depth only valid for Future and Options? Like if I only want to trade in cash, is this still valid?

  262. Shubham Bhopale says:

    These all were wonderfully written Modules and really appreciate what all you are doing. Thank you publishing such awesome content FREE of COST and learners like me will thrive for a life on this.

    Written back then is still so relatable. Cheers!

  263. Balpreet says:

    I am unable to see 20 market depth for Nifty or Bank Nifty Options. Stocks 20 depth is working fine but options is not

  264. Sourabh Sagar says:

    such an amazing explanation.
    Able to develop a new POV

Post a comment