orderdjup
Orderdjup, commonly translated as depth of market, is a concept used in financial markets to describe the liquidity of an asset at different price levels within the order book. It represents the quantity of buy orders (bids) and sell orders (asks) available at each price point and the cumulative volume that would need to be executed to move the price to a new level. A deeper orderdjup indicates more liquidity and typically reduces the price impact of large trades, while a shallow depth suggests that even modest orders can cause noticeable price shifts.
Orderdjup is usually observed through two related data views. The top of the book shows the best
In practical use, orderdjup informs decisions about execution strategies, timing, and order sizing. Traders and institutions
Limitations include the presence of hidden orders, latency between data feeds and executions, and trading behavior