Nathaniel Lucas807 Davis

查看翻譯

What is order book depth and how do professional traders use it?

Order book depth shows the volume of buy and sell orders at different price levels in the market. It provides insights into liquidity and potential support or resistance zones. Professional traders use depth of market (DOM) to anticipate short-term price movements, identify large institutional orders, and gauge supply-demand imbalances. For example, if a large buy wall appears at a certain level, it may act as temporary support. Order book analysis is particularly useful in scalping and high-frequency trading. While valuable, it should be combined with technical and fundamental analysis to confirm trading decisions.