The Depth of Market (DOM) functions differently in centralised markets (like stocks) compared to decentralised markets (like forex), primarily due to differences in market structure, liquidity sources, and order transparency.

1. Centralised Markets (Stocks, Futures, Some Cryptos)
Single Exchange Structure: Orders are routed through a centralised exchange (e.g., NYSE, Nasdaq), where all bids and asks are consolidated.

Transparent Order Book: DOM displays real, executable orders from a single liquidity pool.

Level 2 Data: Shows market depth with price levels, order sizes, and market makers' quotes (e.g., institutional buy/sell walls).

Less Fragmentation: Since trading occurs on a single exchange, DOM provides a clearer picture of supply and demand.

Spoofing Risks: Large players can manipulate DOM by placing fake orders (spoofing), which regulators monitor.

2. Decentralised Markets (Forex, OTC Markets)
No Central Exchange: Forex operates via an interbank network (ECNs, brokers, liquidity providers), meaning DOM varies by broker.

Fragmented Liquidity: Each broker shows their own DOM, which may not reflect the entire market.

Less Transparency: Since forex is OTC (over-the-counter), true market depth is harder to assess; what you see is often aggregated data from a broker’s liquidity providers.

Variable DOM Quality: Some brokers offer synthetic liquidity, while others provide real institutional-level DOM (e.g., FX futures on CME).

No Spoofing (But Less Accuracy): While spoofing is rare, DOM may not show hidden large orders due to decentralised execution.