Hello Traders,
Speed matters for Traders. To be efficient, a trader needs two key things: information for analysis and execution speed. As a tech-driven trading platform, these are the very elements we focus on at Dhan. Our goal has always been to provide an information edge to our traders, helping them navigate the markets more effectively.
Institutional Traders often have an advantage when it comes to both execution and information. At Dhan, we are working relentlessly to level the playing field - whether it’s through DEXT (link here) for faster execution of your traders or through our feature-rich products that unlock advanced analysis capabilities to help you with informed decision making, faster.
Our power users & traders on Dhan have always appreciated the speed of market data updates, be it standalone or via our in-depth integration with the charting library from TradingView. These charts on Dhan are some of the most popular amongst our users, and are loaded with powerful analytical tools like the Option Chain on Charts, Second Timeframes, Custom Timeframes, and much more.
Through numerous interactions with Indian Traders, we learned that one of the most critical data points is order and trade data from the exchange - the accuracy of this and also the speed of updates. The lack of visibility into the complete market landscape and price movements often limits traders from avoiding slippages or tracking market sentiment accurately.
Today, we’re excited to introduce 20 Market Depth for Equity and Options Trading for NSE on Dhan.
20 Depth, also known as Level 3 data, offers deeper insights into market price movements. This data is constructed directly from trades happening on the exchange and the orders being placed, all synced in real time. Now, you can analyse the actual orders being placed and the speed at which they are filled, giving you a near real-time view of market depth instead of just a static snapshot.
Often traders focus on the price which is reflected on any platform or the speed at which it updates, which is called LTP (Last Traded Price). However, traders do miss that the reflected price is of last trade and not of upcoming market movement. A better view here is the depth of market, which shows potential positions being built at different prices.
Market Depth of 5 is often too shallow, as it only shows prices at 5 nearest price levels. Whereas, depth of 20 widens this horizon. For example, even for a liquid instrument, if there is significant depth created at a price which is 15 ticks away, it can be easily identified and benefitted from. This brings better visibility into demand/supply zones being created for any instrument.
You can access the 20 Market Depth, updated in real-time, directly on Dhan TradingView Charts (tv.dhan.co). This feature is disabled by default, so you’ll need to go to User Settings from the top navigation panel to enable it.
Initially, we introduced with no throttling market depth updates, which meant all order data from the exchange was sent directly and it was reflected in the depth. You can see the speed of update from this sneak preview that we posted here for community users of Dhan.
However, we realised that it is extremely difficult for any trader to keep track of price updates at this speed. This is why we have added throttle to update it between 5-6 times every second. Also, do ensure your browser has sufficient memory and available RAM to handle the data flow - otherwise, the charts may feel laggy as your system may consume disproportionate amounts of data to render 20-Depth on an ongoing-basis.
Currently, we have rolled this feature out for the NSE Equity & Derivatives segment. We encourage you to explore it and let us know how this data changes your trading style.
As always, we’re building Dhan alongside our users, so we’d love to hear more about your experience with these new charting and data features.
Happy Trading!
– Hardik
