What Is Depth of Market (DOM)?

Depth of Market (DOM) is a trading tool that provides a detailed view of market liquidity by displaying bid and ask prices at different levels. It helps traders analyze supply and demand for a specific asset and manage orders efficiently.

How to Access Depth of Market (DOM)

To open the DOM window, right-click on a symbol in the Market Watch panel and select “Depth of Market” from the menu.

Understanding the DOM Window

The DOM panel consists of:

• Ask Prices (Red Area) – Prices at which traders can buy.
• Bid Prices (Blue Area) – Prices at which traders can sell.
• Best Bid & Ask – The highest bid and lowest ask price, representing the current market price.
• Price Levels – Additional price levels showing available orders and market depth.

Order Types in DOM

1. Pending Orders – Can be placed by clicking on specific price levels in the DOM panel:

   • Buy Limit – Below the current price.
   • Sell Limit – Above the current price.
   • Buy Stop – Above the current price.
   • Sell Stop – Below the current price.

2. Market Orders – Direct execution at the best available price:

   • Buy – Places a buy order based on the specified volume.
   • Sell – Executes a sell order at the best available bid price.
   • Close – Closes an open position at the best market price.

Additional DOM Features

• Stop Loss (SL) & Take Profit (TP) – Set predefined exit points for limit orders.
• Trade Volume (Vol) – Adjust lot size for new orders.
• Price Alerts – Set price notifications that expire within an hour.
• Modify or Cancel Orders – Right-click on an order to edit or remove it.

Why Use DOM?

• Helps traders analyze market depth and liquidity.
• Enables precise order placement at multiple price levels.
• Improves execution speed and trade management.

By using Depth of Market, traders can make more informed trading decisions and optimize their strategies based on real-time market conditions.