Order Depth

Order depth represents the total amount of liquidity available at various price levels for a given asset. High order depth means that there is enough supply and demand to support large trades without causing significant price impact.

In decentralized exchanges, this is reflected in the size of the liquidity pools at different price points. Traders look for deep markets to ensure they can enter and exit positions without distorting the price.

Monitoring order depth is a fundamental part of assessing the health and viability of a market.