TradeAlmanac
Sign in

Order book depth

The total size of orders resting at successive price levels on both sides of the book.

How to read the number

It answers how much size the market can absorb before the price moves. The width of the spread answers nothing of the kind.

When the metric lies

Orders are pulled faster than execution reaches them: visible depth is an intention of participants, not a commitment to the size arriving.

Also known as: book depth

Related terms