Depth of Market (DOM)


DEFINITION of 'Depth of Market (DOM)'

A measure of the number of open buy and sell orders for a security or currency at different prices. The depth of market measure provides an indication of the liquidity and depth for that security or currency. The higher the number of buy and sell orders at each price, the higher the depth of the market. Depth of market data is also known as the order book, since it shows pending orders for a security or currency. This data is available from most exchanges for a fee.

BREAKING DOWN 'Depth of Market (DOM)'

Depth of market also refers to the number of shares which can be bought of a particular corporation without causing price appreciation. If the stock is extremely liquid and has a large number of buyers and sellers, purchasing a bulk of shares typically will not result in noticeable stock price movements.

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Market-Maker Spread

    The difference between the price at which a market maker is willing ...
  3. Order Book Official

    A trading floor participant responsible for maintaining a list ...
  4. Depth

    The ability of a security to absorb buy and sell orders without ...
  5. Zaraba method

    A method of matching orders that involves using an auction-like ...
  6. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
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