market depth
[/ˈmɑːrkɪt dɛpθ/]
nounpl: market depths
profundidade de mercado
1. A measure of the market's ability to sustain large orders without significant price movement; the quantity of buy and sell orders at various price levels
The stock has good market depth, allowing large institutional trades without moving the price dramatically.
A ação tem boa profundidade de mercado, permitindo grandes operações institucionais sem mover o preço dramaticamente.
2. The liquidity available in a financial market as represented by the order book showing bids and asks at multiple price levels
Traders analyze market depth to understand the true supply and demand for a security.
Os traders analisam a profundidade de mercado para entender a verdadeira oferta e demanda por um título.
3. The extent of available buyers and sellers willing to transact at different price points in a market
Shallow market depth in penny stocks makes them risky for large investors.
A profundidade rasa do mercado em penny stocks os torna arriscados para grandes investidores.
Market depth is a critical concept in financial trading across both Brazilian and American markets. In Brazil, B3 (Bolsa de Valores, Mercadorias e Futuros) provides depth-of-market data to traders. The term is essential for institutional investors and day traders who need to execute large orders without significantly impacting prices. Understanding market depth is particularly important in emerging markets like Brazil where liquidity can be more variable than in established US exchanges.
Related Idioms & Phrases
deep market = mercado profundo (market with good liquidity)
shallow market = mercado raso (market with poor liquidity)
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