Market Depth
Volume of orders at various price levels
What is Market Depth?
Market Depth The quantity of buy and sell orders at various price levels in the order book. Deep markets have substantial orders at many price levels, indicating strong liquidity. In options, market depth varies significantly across strikes and expirations, with ATM near-term options typically having the most depth.
Complete Definition
The quantity of buy and sell orders at various price levels in the order book. Deep markets have substantial orders at many price levels, indicating strong liquidity. In options, market depth varies significantly across strikes and expirations, with ATM near-term options typically having the most depth.
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