Depth of Market

It’s a measure of the size and number of the open positions on the buy and sell side for an asset at various prices. This information is a measure of market liquidity and is also the basis of the data shown in the order book, accessible to traders using Level II trading platforms. Another definition describes depth of market as the number of units of the asset that can be purchased without significantly affecting the price of the asset. In other words, a very large order has to be made before the price of the asset shifts significantly.

By |2018-09-04T14:19:57+00:00September 4th, 2018|0 Comments

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