Depth of Market (DOM) is a measure of a trading platform or exchange's current supply and demand levels for a specific financial instrument. It gives traders real-time visibility into the number of buy and sell orders in the market at various price levels.
The number of buyers and sellers willing to trade at each price level, as well as the size of their orders, is typically displayed by DOM. This data can assist traders in determining potential price movements for an instrument as well as identifying support and resistance levels.
DOM can be used by traders to make informed trading decisions, such as placing limit orders at specific price levels to profit from potential price movements. They can also use the information displayed on the DOM to assess an instrument's liquidity, identify potential market trends, and gauge overall market sentiment.