Platforms and automation · Pro
Depth of market
Also searched as: DOM, Level 2, order book
What does Depth of market mean?
Depth of market displays resting bids and offers at multiple price levels, often as a ladder. It shows displayed liquidity rather than a promise that every quoted order will remain available.
Example
A trader sees fifty contracts offered across several prices, with only five at the best ask.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Orders can be cancelled and hidden liquidity may be absent. A displayed queue does not guarantee a simulated or live fill.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.