Depth of Market

What is Depth of Market?

Depth of market refers to waiting in stock market or a real-time electronic list of all buy and sell orders traded on other trading platforms. It helps traders understand the weights of quotes and offers for any security.

Where have you heard of market depth?

As an investor, you may have heard your financial advisor discuss market depth about the securities you are interested in. Depth of market may be stated in the investment methodology guide.

The information you need to know about the depth of the market...

It refers to a real-time list that reflects the buying and selling status of a particular security. It will contain a limit order (I. E. An order placed with a broker to buy or sell a fixed amount of securities at a set price or more favorable price) to reflect the current status of the order for the securities. Since market depth presents all quotes and offers (not just the best price), it is considered an important guide to the short-term movement of prices.