What is TBQ and TSQ in Stock Market

Newbie traders have been worried about these two terms “TBQ” and “TSQ” as it seems to resemble one another. When they start trading, it’s common that they are encountered with a few new share market terms. When veteran traders use such terms to portray the market condition, newcomers got confused and started messing around the corner. So, what are these “TBQ” and “TSQ” in the stock market? Stop searching everywhere as you will get a complete solution to your problems here.

Let’s cut to the chase and understand the definition of these two terms and corresponding examples of these. So, without wasting much time, let’s get straight to the article!

TBQ Overview

TBQ is the addition of all the open purchase quantities in the stock market. It is an abbreviation of “Total Bid Quantity” or “Total Buy Quantity.” In brief, TBQ is a summation of all the active buy orders while exchanging a stock. Are you using Upstox or Zerodha or something else as a trading app? You can easily notice “TBQ” once you hit the market depth option in your trading app.

Total Bid Quantity

Various trading apps demonstrate to the top 5 buyers. Yet, you may observe more necessary things with a single click on “viewing 20 depth” from your trading app. It actually relies on the brokerage organization about the diverse specifications they are providing. You may check the attached picture above for more clarification.

TSQ Overview

TSQ is the abbreviation of “Total Sell Quantity” of a particular stock, which can be exchanged at a definite time. Moreover, it is also regarded as “Total Offer Quantity” or TOQ. On the contrary, TSQ is the complete opposite of TSQ; as mentioned earlier, it is the combination of all the active sell orders while exchanging a stock.

Total Sell Quantity

What the above-mentioned picture portrays, you can also view in your chosen trading app. So, after clicking on the market depth option, you can easily check this out! However, the trading apps actually showcase the top 5 sellers. On the other hand, you may observe more by hitting the “view 20 depth” option in some apps. In brief, TSQ relies on the characteristics of the trading app and what sort of specifications they are providing!

Significance of TBQ and TSQ

Are you thinking of the importance of TBQ and TSQ in the stock market? Let’s check out the crucial points below:

  • TBQ and TSQ in the stock market assist in the risk management system because you may choose the exit from any trade if demand starts minimizing and supply start increasing drastically.
  • These two factors also help a major criterion for stock, which is fantastic for intraday trading.
  • TBQ and TSQ in the stock market help in identifying the stock’s entry point.
  • These will assist in the long-term investment as it’s quite possible to get the average of these factors from daily exchanges.
  • TBQ and TSQ in the stock market guide the exchanges based on a stock’s label, which is mainly an illiquid or liquid stock.

How do TBQ and TSQ Change?

Have you understood the general definition of TBQ in TSQ in the stock market? Okay, let’s find out how both can be changed!

The number of TBQ and TSQ could transform the volatility in a company’s stock.  Well, the combination of TBQ and TSQ is the sum of the demand and supply of the stock. So, when the requirements or demands increase and supply are comparatively lower, the TBQ number will enhance by lowering the TSQ number.

On the contrary, costs might not fluctuate quickly as per the demand and supply. This is because both of these factors solely rely on the algorithm of the exchange. Veteran traders often think that costs will rise after the enhancement of supply and demand. However, it’s quite true sometimes but not always!

What is TTQ?

Do you aware of the terms TTQ? It’s the abbreviation of Total Traded Quantity, which is the summation of TBQ and TSQ. In simple terms, TTQ is known as the total equity exchanged in a definite share in a day.

Concluding Words

If you are one of the professional Intraday traders, TBQ and TSQ in the stock market will be the most crucial parameters. Being the most significant parameters for share market trading, you can’t simply enter or exit a trader in terms of TBQ and TSQ.

Hopefully, this article provides the complete notion of TBQ and TSQ in the stock market, definition, significance, and many more! Have any specific queries about these? Kindly let us know by commenting below. We will be happy to help you!

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