Learn About Nepse Live Trading And Market Depth

June 30, 2019 | Investopaper

Are you interested to invest in the share market of Nepal?  If so, this tutorial is very helpful for you to learn about the live trading of stocks through the Nepal stock exchange (Nepse) website. In order to visit the Nepse website, open your web browser and type www.nepalstock.com.

NEPSE LIVE TRADING

First, let me begin from the live trading section of the Nepse website. To see the live trading of the listed companies stock, you have to go inside the Nepse website and click on MARKET OPEN. If the trading is open, it will be seen displayed on the right side of the website. The stock market opens from 11 am to 3 PM and 5 days a week from Sunday to Thursday. If the stock market is close, you will see MARKET CLOSE.

Also Read: Online Share Trading In Nepal: How To Buy & Sell Shares?

Now, let me begin with the must-know basic terms of the stock market if you want to perform live trading.

1. SYMBOL: Various symbols are assigned to the companies trading in the stock market. For instance, ADBL stands for Agricultural Development Bank Ltd. It will be easy to trade stocks in the share market by knowing the company symbol.

2. LTP: LTP stands for last traded price. This means the stock of a company is trading at a certain price at a given time.

3. LTV: LTV stands for last traded volume of a company.

4. Point Change: Point Change column of live trading refers to the increase/decrease in the price of the certain stock at that time compared to the previous day closing price.

5. Percent Change: Percent change refers to the change in the price of the stocks in terms of percentage.

6. Open: Open refers to the first transaction price of a certain stock for a given trading day.

7. High: High refers to the highest traded price of certain stock till that time for a given trading day.

8. Low: Low refers to the lowest traded price of certain stock until that time for a given trading day.

9. Volume: Volume refers to the total no. of shares traded till that time for a given trading day.

10. Previous Closing: the Previous closing refers to the previous day closing price of the stock.

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Once you have an idea of these general terms, it will be easy for you to perform live trading. Let me clarify you with one example:

The picture above shows the small frame of live trading in Nepse. Symbol NBL stands for Nepal Bank Ltd. The last traded price of Nepal Bank is Rs. 331 which is an increment of 5 rupees or 1.53 percent ( shown below point change) if compared to the previous closing of Rs. 326. The trading of the company’s stock opened at 325 and the highest and the lowest trading price were 332 and 325 respectively. The total of 127,349 units of the company was traded during the day.

Related: How to access important data and information from Nepse website?

Now, on the right side of the live trading page, you will see the following terms.

Top 10 Turnovers: This list shows the list of the 10 most traded shares in terms of transaction amount at that period of time. The top turnovers list helps you know which company shares are trading frequently in the share market.

Top 10 Gainers: Top Gainers shows the list of the 10 most profitable stocks for a day in terms of percentage gain in price.

Top 10 Losers: Top Losers shows the list of the 10 most losing stocks for a day in terms of percentage loss in price.

MARKET DEPTH

Market Depth is also another important aspect of live trading. The Nepal Stock Exchange (Nepse) started displaying the market depth of listed companies on its website from the year 2015 to facilitate common investors of the capital market. Earlier, only the broker companies could use this facility. Market depth shows the total buy quantity and sells quantity along with the list of buy and sell orders of a certain company available at a certain price.

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The picture below shows the market depth of Nepal Bank Limited as below:

Here, LTP of Nepal Bank is Rs. 337. Similarly, there are 30 orders to buy 45, 757 unit shares of Nepal Bank at different price. Likewise, there are 35 orders to sell 51,883 unit shares of Nepal Bank at different price.  Now, the transaction takes place only if the buy and the sell price match. Either the seller must reduce his order price to 336 or the buyer must increase his buy price to 338 to execute the transaction instantly.

Also Read: 15 Best Blue Chip Shares To Buy In Nepal

Market depth is also useful to predict the price movement of stocks in the market. For instance, in the above example, if the buy quantity of Nepal Bank was huge compared to sell quantity, what would it mean? You can grasp a general idea that there is a chance that the company price may go up. High demand and low supply mean that the price may surge upwards. Similarly, high supply and low demand suggest the opposite.

We will discuss more on how to access important data and information available on the Nepse website in our next article.

Read Related Contents:

Nepal Stock Exchange (NEPSE): Every Thing You Should Know

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