How Does the 'Order Book Depth' Visualize the Liquidity Difference That Causes the Spread Disparity between the Two Asset Classes? ⎊ Path

How Does the ‘Order Book Depth’ Visualize the Liquidity Difference That Causes the Spread Disparity between the Two Asset Classes?

Order book depth is a visual representation of the volume of buy (bid) and sell (ask) limit orders at various price levels. For Bitcoin futures, the depth chart is "deep," showing large volumes clustered close to the mid-price, indicating high liquidity and a tight spread.

For low-cap altcoins, the chart is "shallow," showing a large gap (wide spread) between the best bid and ask, with sparse volume, which confirms low liquidity and high price impact risk.

How Does the ‘Spread’ on the Order Book Relate to Market Depth and Liquidity?

What Is ‘Order Book Depth’ and How Does It Measure Liquidity?

What Is the Practical Implication of a “Wide Mid-Price” in an Illiquid Options Market?

In Cryptocurrency Trading, Why Are Bid-Offer Spreads Often Wider for Less Liquid Altcoins than for Bitcoin?

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

How Is ‘Bid-Ask Spread’ Related to Market Depth and Liquidity?

How Does the Depth of the Order Book Influence the Impact of a Flash Crash?

Why Is the Bid-Offer Spread Often Wider for Low-Cap Altcoins Compared to Highly Liquid Assets like Bitcoin Futures?