DeutschWhat is Market Depth?
Market depth refers to the market’s ability to sustain relatively large market orders without impacting the price of the security.
Explanation:
It shows the number of open buy and sell orders for a security at different price levels. Greater market depth indicates more liquidity and less volatility.
Practical Example of Market Depth:
A stock with substantial buy and sell orders at various price levels is considered to have good market depth, meaning it can handle larger transactions without significant price changes.
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