Depth of Market

The Depth of Market is a technical indicator that is based upon the quantity of open orders for an individual security or currency at separate prices.

The quantities of open orders is divided into buy orders and sell orders and is a numerical measure of how liquid the market is for that security at that trading price point.  The more open buy and sell orders, the more liquid the market.  Changes in Depth of Market are most noticeable with smaller Market Cap stocks, as very large and Mega Cap stocks, (and Major currency pairs such as the EUR/USD, GBP/USD, USD/JPY) regularly have a vast number of buyers and sellers, resulting in negligible Depth of Market movements.