ordervolumes

Order volumes refer to the quantities of unexecuted, resting orders in a market, typically shown in an order book as bid volume (buy orders) and ask volume (sell orders). They indicate market depth—how much interest exists to trade at each price level and how resistant prices may be to small orders. Order volumes can be recorded at individual price points or summed across ranges to produce a running picture of liquidity.

Volumes are dynamic and change as participants place, modify, or cancel orders. Analysts distinguish between total resting volume, which includes all unfilled bids and asks, and the exposed volume at the best bid and best ask. The balance between bid and ask volumes, sometimes called the order imbalance, provides a rough signal of near-term price pressure, though it is not a guaranteed predictor.

Order volumes are distinct from traded volume. Trade volume measures executed transactions, while order volume measures outstanding intentions. High resting volumes and deeper market depth generally support tighter bid-ask spreads and more price stability, whereas thin depth can lead to larger price moves from small orders. Hidden orders, dark pools, and latency can obscure true demand and supply, making observed volumes an imperfect guide.

Markets and traders rely on order volume data from sources such as public order books (level 1 or level 2 data) and other market data feeds. Limitations include data latency, partial visibility of hidden liquidity, and the potential for spoofing or other manipulations. Related concepts include market depth, the order book, level 2 data, liquidity, and market microstructure.