Depth of Market DOM

Depth of Market (DOM) is a real-time display on trading platforms that shows pending orders at various price levels. It provides a visual representation of liquidity, displaying both buy and sell orders at specific prices.

DOM matters as it offers traders valuable insights into market sentiment and potential price movements. By understanding the depth of orders at different price levels, traders can make more informed decisions about when and where to enter or exit trades. For instance, a deep DOM at a certain price level may indicate strong support or resistance, suggesting that prices may struggle to break through that level.