How Do You Define Market Depth?
Market depth refers to the ability to support relatively large market orders without significantly affecting the value of a security. Market depth takes into account the general level and breadth of open orders, bids and bids and generally refers to trades in the same security. The more buying and selling orders there are, the deeper the market will be.
- Market depth depends on the price of a default purchase (bid) and sale (offer) orders that vary in price range.
- In addition to price levels, depth also takes into account the size or volume of the orders associated with each price.
- The deeper the market, the more likely it is that a large number of securities will be traded without any significant impact on the price.
- Market depth can be determined by Level 2 reference, which represents a portfolio of bond orders.
Literal Meanings of Market Depth
Meanings of Market:
Advertise or advertise (something)
The area or environment in which business transactions take place.
Sentences of Market
Farmers go to the market
Synonyms of Market
retail, vend, sell, hawk, trade, offer for sale, put up for sale, merchandise, peddle
Meanings of Depth:
Distance from the base or surface of an object.
The standard for being extreme or extreme
A point just below the surface.
Sentences of Depth
Athara water is not more than 12 feet deep
The government does not understand the depth of the problem
He picked up the manhole cover and explored the depths below
Synonyms of Depth
remotest area, back, bed, abyss, deepness, distance downwards, distance from the outside, bottom, pit, floor, deepest part, distance inwards