How Does a Large “Order Book Depth” Help to Mitigate Slippage?

Order book depth refers to the volume of buy and sell orders at various price levels around the current market price. A large depth means there are many orders ready to be filled.

When a large market order is executed, it can fill many orders without having to move significantly down the price ladder. This ensures the trade is executed closer to the expected price, thus mitigating slippage.