Market depth is a measure of the volume of buy and sell orders resting at different price levels around the current market price for an asset, indicating how much trading volume a market can absorb before price moves significantly. Greater depth means large orders can be filled with less price impact, and is a direct expression of the liquidity that market makers and liquidity providers supply to a market. Market depth is typically visualised as an order book showing cumulative bid and ask volume by price level.
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- Market depth is a measure of the volume of buy and sell orders resting at different price levels around the current market price for an asset, indicating how much trading volume a market can absorb before price moves significantly. Greater depth means large orders can be filled with less price impact, and is a direct expression of the liquidity that market makers and liquidity providers supply to a market. Market depth is typically visualised as an order book showing cumulative bid and ask volume by price level.