Price ladder trading

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Information about Price ladder trading

Published on November 1, 2018

Author: ShashankPatel60

Source: slideshare.net

1. By Tejas Khoday February 26, 2018 Price Ladder Trading fyers.in/price-ladder-trading/ The Depth of Market (DOM), popularly known as the “Price ladder”, is an advanced user interface integrated with Fyers Web Platform. Professional day traders, scalpers and prop- trading firms around the world use the price ladder for executing their trades. It is a refined and improvised version of the Order Book/Snap Quote. So far, we’ve seen a horizontal form of Snap Quote to check the best 5 bid/ask. With the introduction of Fyers Web, Indian traders are now going to experience the unique vertical form (ladder form) of the Snap Quote window. In this post, we will instruct you upon the various functionalities of Price Ladder (DOM). 1. How to access Price Ladder (DOM) on Fyers Web? • Log in to Fyers Web platform (trade.fyers.in) • Click the ↑↓ button at the top right corner of the chart panel • Price Ladder (DOM) window will open on the platform The main parts of Price Ladder (DOM) window explained in the below picture: 1/7

2. 2. Placing and changing orders. a. How to place an order: To place a market order simply click “Buy Market” or “Sell Market” buttons beneath the price ladder. To place an order with a specific price i.e. a limit order, click the cell at a price you want to trade in the price ladder. For buy orders, use the left column and for sell orders, use the right one. These orders will be Limit or Stop orders by default. Logically, if you want to buy below current price it will be a Limit order, and to buy above will be a Stop. For selling – above price will be a Limit, and below is a Stop. The picture below illustrates this. 2/7

3. If you want to place an order which is different from the defaults described above, hold the CTRL button on your keyboard and click the cell you want. The order type will be reversed Stop ↔ Limit. You can use the right- click menu to place an order: b. How to modify an order: There are a few ways to modify your working order. i. Click the tag with the number next to the Price Ladder (DOM) – this is your order tag. You can then change any settings that you like, and click Modify. 3/7

4. ii. Click and drag the order tag to another price level. The same dialog box will open. c. How to cancel an order: I. To cancel only one specific order, click the “X” next to the order’s tag. II. To cancel all buy orders, click the “X” under the blue buying column on the left. III. To cancel all sell orders, click the “X” under the red selling column on the right. IV. To cancel all orders, click the “CXL ALL” at the bottom of the Price ladder. The picture below illustrates this: 4/7

5. 3. Some additional things about Price Ladder (DOM) : a. Marker colors in the Price Ladder (DOM) and their meaning: i. Active “Limit Buy” and “Limit Sell” orders are Green. ii. Active “Stop Buy” and “Stop Sell” orders are Red. b. Reverse and Flatten: The “Reverse” and “Flatten” buttons are used to execute quick actions on the platform. To explain Reverse button, it helps you reverse your existing traded position with the same volume/quantity. For e.g. Assume you’ve taken a short intraday position on AXIS Bank for 100 quantities considering the price would decrease in some time. However, the trend which you’ve predicted went adverse and suddenly, the price curve started moving upwards. Here, you can use the Reverse button to square off your current short position of 100 quantities at market price and enter a long position with the same volume for AXIS Bank to recover the losses and capitalize the opportunity. Now to explain Flatten button, it is just a square off button that lets you close your open position for a selected security at market price. 5/7

6. c. Price Ladder Optimization: In some scrips, due to a smaller tick size and a large gap between bid/offers, the price ladder can seem distorted with zero values. You can remove empty spaces between the best 5 bid/ask spreads by making a change in the settings window. Upon doing so, your view will be much better. The picture below illustrates this. d. Volume representation with histogram: As we know that the Price Ladder (DOM) shows 5 best bid/ask spreads for a selected security. It also shows the total volume demanded/supplied at each price level with the histogram. So as shown in the screenshot below, each number on the price ladder shows the demand/supply. For instance, the highest supply of shares, in this case, are at 324.8 and the highest demand for them is at lower levels at 324.35. 6/7

7. A boon for intraday traders in India: We are proud to be the first brokerage in India to introduce this feature in 2017. The Price Ladder functionality is especially designed for those traders who are very particular about speed and order execution price. It is widely used internationally by professionals and full time traders. The reason it is superior to the traditional snap quote window is because it gives you a real-time feel of the price action. It is the modern equivalent of the ticker tape. I have personally used price ladders on international exchanges. Jobbers, price action traders and basically all types of intraday traders will find this feature very valuable. Do empower us with your feedbacks. Let’s discuss what you like, what you don’t and improve the overall trading experience for everybody. We have created a video tutorial to explain this feature in detail . If you believe that we genuinely providing what traders really need, then feel free to refer your friends to us. Tejas Khoday Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India. 7/7

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