Depth of Market (DOM), also known as the order book, is a financial term that refers to the display of all outstanding buy and sell orders for a particular security or asset at various prices. It provides a snapshot of market liquidity and helps traders assess the supply and demand dynamics in real-time.

In the depth of market display, price levels are arranged vertically, with the best bid prices on one side and the best ask prices on the other. The highest bid and lowest ask prices represent the most competitive prices currently in the market. Traders can see the quantity of shares or contracts available at each price level, allowing them to gauge the depth of the market and potential support or resistance levels.

Analyzing the depth of market is crucial for traders, especially in fast-paced and volatile markets, as it aids in making informed decisions about entering or exiting positions. A deep market with significant buy and sell orders at various price levels suggests higher liquidity and lower slippage, while a shallow market may indicate potential price volatility and less liquidity. DOM is a valuable tool for traders seeking to understand the immediate market conditions and make well-informed trading decisions.