The depth of market window in MT5 or cTrader shows the volume available at each price level from your broker's liquidity. For larger orders, it gives an idea of price impact.
How to read it:
- Best bid/ask with available volume, e.g. 3 million at the best ask.
- Further levels with additional volume.
- An order larger than the best level fills partly at worse prices.
Example: a 5-lot order with 3 lots at the best ask and 4 lots one point higher fills at an average price slightly worse than the best ask.
Limitations:
- Retail FX depth shows only your broker's liquidity, not the whole market.
- Liquidity can disappear in milliseconds, especially before news.
For most retail sizes, impact is negligible on majors but can matter on crosses or during thin hours.
Do you check the DOM before larger orders?
