Depth of Market Available on cTrader
Hello traders, welcome to the cTrader tutorial and the third module training. In this lesson we’re going to learn about the depth of market available on the cTrader platform. And this is one of the most important features of the cTrader platform because not only it has a depth of market for forex traders but if features three types of depth of market. Now let’s go to the actual platform and I’m going to show you where to find it. So the first thing we’re going to do is we’re going to choose a currency pair and right now we have chosen the Euro-US dollar. You can see right here in the middle of this control center, we have three icons okay.
We have the depth of market of the VWAP depth of market, we have the standard depth of market, and we have the price depth of market. We’re going to start by the VWAP depth of market and if you click on the first, icon you’re going to get the VWAP depth of market. And the way you’re going to use these VWAP depth of market is first of all, you are going to choose the volume amount ranging from 250k to 5 million but you can change it, for example and starting from 1 million out which is 10,000 and then maybe a 50,000, then a one lot, a 100,000 etc. You can modify this depth of market and what these quotes are going to show you is the expected VWAP for each volume. If you don’t know it all ready, a VWAP is a Volume Weighted Average Price and it’s a very important the price level for day traders because you usually find a lot of big orders around it.
Now you’re not going to be using too much the VWAP depth of market but you are going to be using more the two that comes now. The second one is the standard depth of market, which shows you a list of only common price quotes and the liquidity available for each price. For instance we have here at the 0753 level, we have 6.5…Now we have a 9.5 million Euro order on the buy side and we have some big orders on the sell side. So this standard…well the depth of market is going to help you visualize where you are going to find big orders. For example you can see that right now we have a sell order…well we have a sell position on the Euro-US dollar and we have our stop-loss above the previous high.
And the previous high is about the 0751 level and if you look at the 0751 level, let’s go find it out. 0751 level, we have some big orders but the actual level that has to break is the 07529 level with 20.65 million Euros on the buy side meaning that those are sell orders that buyers have to break through for price to go any higher. The same on the sales side. With big orders around…let’s go back, 07476 level, 0746 level which would be around here. So we do have a range that can be played and we have to see where this is going to go. But this is how you’re going to be using the standard depth of market to visualize where are big orders at.
The last is the price dome [SP] or the ladder, which shows an entire list of prices above and below the actual market price with the liquidity available at each level. The cool thing about this latter is that you can use it to trade. For example let’s say that well we are ready in a short position on the Euro-US dollar. Let’s say that we want to enter the market when the price breaks with this low. At the 0748 level. Well we have to go down here on the 0748 level. You can see that we have right here our position. But if we go further down, we can put on a sales stop right here and you can see that now we have a sale order where price breaks with this low. And you can see also on the position tab right here.