All termsMarkets and TradingWorth knowing
Market Depth
Market depth describes the amount of buying and selling interest available at different prices in a market. A deep market has substantial orders available around the current price, while a shallow market may have relatively little liquidity beyond the best bid and ask.
Why it matters to you
An asset can appear liquid when looking only at its current price or spread but still have very little depth. For larger investors, market depth matters because a sizeable order may move through several price levels and result in a much worse average execution price.
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