kaupankäyntisyvyys

Kaupankäyntisyvyys, known in English as market depth or order book, refers to the display of pending buy and sell orders for a particular security at various price levels. It provides a visual representation of the immediate supply and demand for an asset. This information is crucial for traders and investors as it helps them gauge market sentiment, identify potential price movements, and execute trades more effectively.

The order book typically shows the quantity of shares or contracts that are bid (buy) at specific prices and offered (sell) at specific prices. The bid side represents buyers willing to purchase the asset, while the ask or offer side represents sellers willing to sell. The difference between the highest bid price and the lowest ask price is known as the bid-ask spread. A narrower spread generally indicates higher liquidity, meaning it's easier to buy or sell the asset without significantly impacting its price.

Analyzing kaupankäyntisyvyys can help traders understand where significant buying or selling pressure might emerge. Large buy orders at a certain price can act as support, potentially preventing the price from falling further, while large sell orders can act as resistance, hindering price increases. Observing the depth of these orders at different price levels can provide insights into the immediate supply and demand dynamics, allowing traders to make more informed decisions about entry and exit points for their trades. However, it's important to note that the order book only shows current pending orders, and these can change rapidly in response to market events.