Does a High Volume of Small Trades Necessarily Indicate High Market Depth?

No, a high volume of small trades does not necessarily indicate high market depth. Market depth refers to the volume of orders at various price levels on the order book, indicating the market's ability to absorb large orders without significant price change.

A high volume of small trades only indicates high trading activity, but if those orders are only clustered at the best bid/ask, the market can still be shallow and susceptible to slippage from a single large order.