08th Apr 2021

Market Depth from CryptoGT

Article Table of Contents:

Features of the CryptoGT Market Depth Tool
Why is Market Depth Analysis Important
How Market Depth Corresponds to Real Market Conditions

Market liquidity influences every aspect of trading, from execution speed to the spread. In simple terms, it tells the trader how many buyers and sellers are present in the market and how quickly transactions can take place. The more buyers and sellers, the greater the market liquidity. Depth of Market (DoM) or Market Depth is an important tool in this regard. It helps monitor the available volume and prices of an asset in real-time.

CryptoGT uses its cutting-edge aggregation engine to absorb all available liquidity from tier-1 providers and selects the best available prices for clients to trade, on any available volume. You can choose to execute trades on any available volume in the Market Depth window of our trading platform, without fear of rejection or additional delays. This is a unique tool that gives you a chance to enter the markets with an advantage.

Here’s an overview of this indispensable tool. 

Features of the CryptoGT Market Depth Tool

You can access Market Depth from the CryptoGT MT5 terminal. Go to the “MarketWatch” window. Right-click on the asset symbol you are interested in. Select "  Depth of Market." Here’s what you can access with this:
Access tighter spreads on a range of assets. You can see the “Top of Book” spread, to get an overview of competitive spreads on high volumes.
The opening price is an average of prices and volumes from all tiers of liquidity providers. High-volume traders can use this multi-tier liquidity to take advantage of market volatility.
Get the advantage of trading with zero hidden fees and commissions.
Pricing is consistent. You can clearly monitor market prices, without any surprises.
Multi-tier liquidity enables fair pricing, which leads to competitive spreads. This enables advanced traders to execute complex trading strategies.
You also gain access to competitive trading conditions in the crypto and FX markets, with 100% trade execution guarantee. The presence of a large number of liquidity providers ensures trade execution across all tiers, without requotes or rejection. This increases the probability of positive trade outcomes.

Why is Market Depth Analysis Important?

You may use Market Depth to analyse price action. By gaining insights into the bid-ask spreads, along with volume data for an asset, you can identify:
  • Current market trends
  • Technical Analysis
  • Potential future price trends
  • Positions for stop-losses and take-profit orders. Traders can also use the data to place pending orders.

How Market Depth Corresponds to Real Market Conditions

The order flow in Market Depth rises and falls according to the participation of buyers and sellers in the market. Some events that impact trade volumes are:
  • Macroeconomic Data: Economic indicators like GDP growth, inflation, and unemployment levels impact trading volumes. This is because both retail and institutional traders plan strategies around these events. 
  • Time of Day: Market opening and closing hours tend to impact trade volumes.
  • Support and Resistance Levels: Stop orders are placed around defined support and resistance levels. 
  • Breaking News: Geopolitical news can impact order flow. High impact events like election results or natural disasters can lead to an increase or decrease in trade volumes.

DoM is a useful tool for decision-making and managing trading costs. The deeper the market liquidity, the lower the spreads. CryptoGT offers you the advantage of customised trading conditions and superior analysis tools through its exclusive MT5 platform. The one-click trading function allows you to place orders to buy and sell an asset, directly from the DoM window, without specifying additional conditions. Start trading with DoM today.

What Market Depth features do you value the most for trading? Connect with us at @CryptoGTGlobal and share your thoughts.
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