Skip to main content

How Does ‘Market Depth’ Differ from ‘Trading Volume’?

Trading volume is the total number of units traded over a specific period, indicating historical activity. Market depth, on the other hand, is a snapshot of the current order book, showing the quantity of buy and sell orders at various price levels.

Deep market depth suggests high liquidity and resistance to large price moves, while high volume indicates active trading.

How Do ‘Limit Orders’ Mitigate Slippage Risk Compared to ‘Market Orders’?
How Does ‘Order Book Depth’ Quantify Liquidity?
What Is an “Order Book” and How Does Its Depth Relate to Market Liquidity?
How Does the ‘Spread’ on the Order Book Relate to Market Depth and Liquidity?