The Depth Chart, often called Market Depth or DOM (Depth of Market), is an essential tool for every PSX investor and trader. It’s a dynamic, real-time snapshot of the supply and demand for any stock on the Pakistan Stock Exchange.
Instead of just seeing the last traded price, the Depth Chart shows you who is waiting to buy and who is waiting to sell—and at precisely what price levels. This helps you understand the current liquidity and potential short-term price movements in the KSE-100 or any other listed stock.
How to Read the PSX Depth Chart
Imagine the chart as a tug-of-war between buyers and sellers, visualized as two cumulative "hills" or curves.
Component | What it Means for Your PSX Investment | Color |
Buy Orders (Bids) | The total demand for the stock. This is the volume of shares people are lined up to BUY at various prices below the current market price. | Green (Left Side) |
Sell Orders (Asks) | The total supply of the stock. This is the volume of shares people are lined up to SELL at various prices above the current market price. | Red (Right Side) |
The height of the curve at any price level tells you the cumulative volume (the total number of shares) waiting to be traded at that price or a better one.
Using Market Depth for PSX Trading Strategies
Mastering the Depth Chart can significantly improve your intraday trading and entry/exit points.
Spotting Strong Barriers (Support & Resistance): Look for the "Walls"—sudden, massive spikes in volume on the chart.
A massive Buy Wall (green side) indicates a strong price floor (Support).
A massive Sell Wall (red side) indicates a strong price ceiling (Resistance).
Assessing Liquidity:
"Deep" Chart (Wide, even hills): Highly liquid stock. Large trades won't move the price much (less slippage).
"Shallow" Chart (Short, sparse hills): Lowly liquid stock. Price can jump or crash easily, increasing risk.
The Depth Chart gives PSX investors a crucial look into the immediate intentions of the market, helping to set optimal limit orders and anticipating short-term price fluctuations.
Where to Find PSX Market Depth
You can access the real-time PSX Market Depth data directly within the StockIntel platform. This essential tool for analyzing buying and selling pressure is typically found on the main trading interface.
To view the Depth Chart and apply these insights to your strategy, navigate to StockIntel's trading page.
