Depth Chart

A depth chart is a visual representation of a market’s order book. The depth chart indicates the asset’s price on the x-axis and the quantity of open orders on the y-axis. The quantity for a given asset price is the net amount of open orders at that price or closer to the spot price. The gap between the buy orders and the sell orders is the bid-ask spread. Traders may use a depth chart to determine the liquidity of an asset. Additionally, a buy wall may indicate resistance and a sell wall may indicate support. A depth chart will change as traders add, remove, and execute orders.