Depth of Market (DOM), Explained
Depth of market, often shortened to DOM, is a live list of the buy and sell orders waiting to trade at different prices around the current market. Picture a ladder of prices: above the current price sit the sell orders people have placed, and below it sit the buy orders, and the DOM shows how many contracts or shares are resting at each level. It's sometimes called the order book or the ladder. Traders watch it to gauge where a lot of orders are stacked up, which can hint at prices where the market might slow down or push through. The DOM shows resting orders that can be added or pulled at any moment, so it's a snapshot of intentions, not a promise. It's used most in futures trading for fast, short-term decisions.
The DOM shows resting bids and offers at each price. How traders read the ladder for context and why resting size can shift the moment it is tested.
Key points
- Depth of market (DOM) is a live list of the resting buy and sell orders waiting at prices around the current market.
- It's usually shown as a ladder, with sell orders stacked above the current price and buy orders below it.
- Each price level shows how many contracts or shares are waiting there, which hints at where orders are concentrated.
- It's also called the order book, and traders use it to judge where the market might pause or push through.
- Resting orders can be added or cancelled instantly, so the DOM shows intentions that can vanish, not guaranteed trades.
- It's most popular with short-term futures traders making fast decisions, and reading it takes practice to avoid being fooled by fleeting orders.
Frequently asked questions
What does depth of market show me?
It shows the orders sitting and waiting to trade at each price near the current market, both above and below. You can see how many contracts or shares are resting at each level, which gives a sense of where buying or selling interest is stacked up right now. It updates constantly as orders come and go.
What's the difference between the DOM and the order book?
They're basically the same thing. Order book is the general term for the list of resting buy and sell orders, and DOM, or the ladder, is how that book is displayed in most trading platforms. Different tools use different names, but they show the same underlying resting orders.
Can the DOM be misleading?
Yes. Resting orders aren't promises, and they can be added or pulled in an instant. Large orders sometimes appear and disappear without ever trading, which can create a false sense of support or resistance. That's why experienced traders treat the DOM as context, not proof of what will happen.
Do I need Level 2 data to see the DOM?
Usually yes. The DOM comes from what's often called Level 2 or depth data, which shows orders beyond just the best bid and offer. Most futures platforms include it, and for stocks you often need a data subscription that provides the fuller order book.
Does Agenticks show a live DOM?
Agenticks is centered on AlgoAgent, which focuses on researching, backtesting, and building strategies rather than showing a live order ladder. If you have a DOM-based idea, you can ask the agent to turn the logic into a testable strategy and check how it performed on past data.
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This content is for educational purposes only and does not constitute financial advice. Trading involves risk, including possible loss of capital.