Depth of Market (DOM) is a measure of the supply and demand for liquid, tradeable assets. A deep market has high liquidity and large depth, meaning there is plenty of buy and sell orders at various prices. This allows traders to execute orders quickly without significantly affecting prices. Deep markets are important for hedging risk and maintaining orderly markets.The depth of a market can be measured in several ways, including the number of buyers and sellers at each price level, the total value traded at each price level, or the time it takes to execute an order at each price level. Generally speaking, a deeper market is better because it provides more liquidity which leads to tighter spreads (the difference between the buying and selling prices) and faster execution speeds.
