Market Depth
Definition
A measure of the quantity of buy and sell orders available at various price levels in the order book, indicating the liquidity and ability to absorb large trades without significant price impact.
Example
High market depth means large institutional orders can be filled with minimal slippage.
Related Terms
Frequently Asked Question
What is Market Depth?
Market depth shows the volume of buy and sell orders at various prices in the order book. Deep markets can absorb large trades with minimal price impact — shallow markets see high slippage.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.