Market depth, also known as depth of market (DOM), refers to the amount of liquidity and volume within a security.

It can be evaluated by examining the order book of a security, which shows a list of pending orders to buy or sell at different price levels. A high trade volume does not necessarily equate to good market depth, as there may be an imbalance of orders that creates high volatility even for the most highly traded stocks.

In general, stocks with established market depth are more liquid and provide more stable pricing. This is because there are enough orders on both sides of the market to allow for efficient trading, without any single large order significantly moving the market. As such, market depth is an important consideration for traders and investors looking to buy or sell securities.

To find the live Market Depth information on our platform, please navigate to Trade(1) → Select an asset of your choice(2) → Hover over the 3 dots in the asset window(3) → select Market Depth(4)

Let's have a closer look at the Market Depth illustration.

In this example, we are looking at BMW($BMW).

At the time of the screenshot, the trading price for BMW was $108.40 with a spread of 0.02%. The spread defines the gap between the lowest sell price and the highest buy price at that moment.

In the top red area, you can see that the current lowest selling price was $108.42 with a quantity total of 126.

In the bottom green area, you can see that the current highest buying price was $108.40 with a quantity total of 1572.

In other words, at that moment, there were 126 BMW shares for sale for $108.42 and X amount of active orders to buy 1572 shares for $108.40.

Depending on the gravity of the imbalance between available shares to purchase and for sale, the market value of the share can potentially rise or fall.

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