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Distinguish between ‘Trading Volume’ and ‘Liquidity Depth’

Volume is total units traded over time; Depth is the quantity of orders available near the current price.
Greeks.Live14.11.25

Distinguish between ‘Trading Volume’ and ‘Liquidity Depth’.

Trading volume is the total number of units of an asset traded over a specific period. Liquidity depth is the amount of buy and sell orders available at various price levels near the current market price in the order book.

High volume indicates high activity, while high depth indicates the market's ability to absorb large trades without significant price impact.

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