Zerodha, India's largest discount brokerage firm, has introduced 20 market depths for its users on Kite app. This feature will allow Kite users to check 20 bids and offers instead of the usual 5.

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"This is quite a popular feature among professional traders & Kite is the only retail platform to offer it," said the discount broker while unveiling it.  
Taking to Twitter it posted, " With 20 market depth on Kite, you can see 20 bids & offers instead of the usual 5. This is quite a popular feature among professional traders & Kite is the only retail platform to offer it."

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Level 3 or the 20-market depth feature is unique and has multiple uses. It becomes handy while trading an institutional desk. "A regular retail trader would not understand this feature anytime soon, simply because this feature was unavailable all these years until we introduced it for the very first time to the Indian retail traders," said a blog posted by Zerodha.

Let's look at some of the advantages of Zerodha's 20 bids and offers features:  

Contract availability
For the option traders, the 20-depth order book gives great visibility into the availability of contracts to trade and help identify better price points to execute these trades.  

Execution control
Level 3 data gives you full visibility of the approximate execution price for your trade. This is particularly useful when you decide to scalp the market. When you scalp the market — You trade large quantities, i.e. buy and sell large amounts in quick succession to profit from small tick moves in the stock
 

Position sizing
Level 3 market window plays a critical role in ‘guesstimating’ the number of shares to trade, given the liquidity of the stock.  

Order placement
You can extend the position sizing concept and use the 20 depth market watch to place a stop loss or a limit order.