Depth of market in cTrader and what it does and doesn't show

[Amanhasnoname]

cTrader displays a depth of market panel that many retail traders treat as a view of the real market. It's useful, though it's often misunderstood.

The panel shows the liquidity the broker has available at each price level, aggregated from its providers. It does not show the entire interbank market, and the sizes shown may be a mix of real and indicative amounts.

Still, the information has uses. Thin depth near the price suggests that a moderate market order might slip. Sudden changes in depth can indicate that providers are pulling quotes ahead of news.

What it can't do is predict direction. A large number on the bid side doesn't mean price will rise. Liquidity can vanish in an instant.

The best use is as an execution tool. Before sending a larger size, a quick look at available depth shows whether the order will fill cleanly or in chunks.

Does anyone use depth of market for anything beyond sizing?