Swapzone Glossary: Market Depth

Ever wondered why a large crypto trade can move the price more than a smaller one?

Market depth helps explain it.

Market depth shows how much buying and selling activity is available at different price levels in a market.

Why does it matter?

1. Deeper markets can handle larger trades with less impact on the price
2. Markets with low depth can experience bigger price movements from relatively small trades
3. Higher market depth usually means better liquidity and more stable execution
4. It’s especially important when swapping larger amounts of crypto

Understanding market depth can help you assess how much a trade may affect the price before you swap.

What crypto term should we explain next?

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