The Depth of Market DOM displays bids and asks for a particular instrument at the currently best prices closest to the market. For the non-exchange symbols, the depth of market is a scalping tool that allows placing market and pending orders in a single click. The depth of market allows users to easily change prices of previously set orders.
MetaTrader 5 Help
You can easily become confused but we hope we can explain what all these numbers are all about and how read where there is support and resistance via the Market Depth.
It is very easy to see via the market depth when there are more sellers than buyers and when this happens the price tends to weaken. The reverse is also true, when there are more buyers than sellers the price tends to gain strength.
Sometimes prices can fall and go up so fast it is almost impossible to place your trade. We can only recommend that when you start trading you practice on a demo account first and get very fast at entering demo trades, to survive you must be fast with your fingers. Ask any day trader what they use before they place a trade? Since we have requested 20 lots with the Fill or Kill condition at the market price, the required volume will be made up of the nearest market bids.
If the order contained a certain price, then it would be executed only at this specified price and only in the specified volume. You can view the history of order execution in the "History" tab of the "Toolbox" window: You see here that the final volume of 20 lots was received from a few offers closest to the market. The corresponding offers disappear from the depth of market. Depending on how requests are processed on the server, they can be displayed directly in depth of market mostly limit requests or wait for execution on the broker's side mostly stop or stop limit requests and then be converted into a market order.
Here is an example of placing a limit request to buy 3 lots of the futures contract RTS Specify the required volume in the "vol" field and click on in the Bid price area for the Buy Limit order or in the Ask price area for the Sell Limit order in the "Trade" column in the line of the price, at which you wish to place an order.
Examine "Quick trading" section to learn how to quickly manage orders in the depth of market. When placed successfully, the request appears in the depth of market: As soon as there is a market participant ready to sell the financial instrument at the specified price, the order will be filled and will turn into a position. Until reaching the stop price , these orders are processed within the MetaTrader 5 platform. The depth of market allows users to quickly manage stop levels Stop Loss and Take Profit and pending orders of open positions.
This option is only available with the "One Click Trading" option enabled in the trading platform settings. Trade requests are sent from the depth of market instantly without showing a trading dialog. These levels can be moved by mouse: Move a level to the line with the required price, and it will be modified instantly.
Hover the mouse cursor over the button or to the right or to the left from the level and click Shift. The button will change its view to. Click the button to delete the level. Charley Warady Many traders, particularly new Forex traders, want to know if they are going to be able to get into or out of a trade; therefore they often inquire about Forex market depth.
It seems, on the surface, to be a simple matter. Under normal situations in any other market, the number of existing orders that haven't been executed would be easy to calculate and be made available. This is not necessarily true when it comes to Forex. To determine Forex market depth, there are many intangibles to take into account.
This doesn't really help the smaller retail Forex trader. If you're trading small, or even mini trades, you won't be using an ECN Forex broker. Ironically, it's the smaller retail Forex broker that could most benefit by knowing the Forex market depth.
Most retail Forex brokers don't offer the statistics needed to determine Forex market depth. It's not that the broker is necessarily holding back any information.