depth

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Depth

The ability of a security to withstand greater or smaller demand without affecting the price. Deep securities tend to be highly liquid and can be bought or sold in large quantities without their prices greatly moving in either direction. Among the factors affecting depth is the minimum price increment at which trades can be made (the tick size), market transparency, and restrictions on trade due to a futures or option contract on the security.

depth

Used to refer to a security market's ability to absorb large security purchases or sales without significant price changes. A market's depth is an important consideration in selecting securities to trade and markets in which to trade. See also deep market.

depth

The distance between the front and the rear property line of a lot. Because local government rights-of-way for streets and sidewalks may exceed the actual width of the pavement, the lot depth may be less than the visible yard.

References in periodicals archive ?
Market depth really matters for the industry because it is the increased investor scrutiny that is a principal driver of good governance.
Market Depth for NYSE OpenBook is now available in eSignal 7.3.
We show that in the free entry equilibrium, internalization reduces market depth and price informativeness, and increases uninformed losses.
This decline is also accompanied by a reduction in market depth. Therefore, for small-order traders there is a net gain, but for large-order traders there is a reduction in liquidity.
Moody's analysis is contained in its recently-released report titled "Islamic Banking - Indonesia and Malaysia: Market Depth and Regulatory Support Underpin Malaysian Islamic Banks' Resilience in Current Down Cycle," and is authored by Chen.
"Term funding has also shifted toward the shorter end of the spectrum, placing tension on market depth among the longer LIBOR maturities.
In particular, market depth is increasing with the emergence of new instruments, such as amortising structures and more equity-like features," said Rehan Akbar, an analyst at Moody's.
Since SFC is keen to keep abreast with developments to best serve its clients, the new application features high flexibility and trading proficiency with spot prices from the Saudi Financial Market and ease of executing orders, along with the latest news, charts, market depth, and other distinctive features.
Atef El-Sherif, the new chairman of Egypt's Stock Exchange, has identified the revival of liquidity and increased market depth are the stock market's top priorities, in addition to addressing the problems faced by businesses and investors.
This, in turn, will provide more Islamic investment options and enhance the market depth. From last May, MSM started calculating an index for companies whose activities and financial approach meet the requirements of the Islamic Sharia as issued by the OIFI.
This will enhance the available Islamic investment options and market depth. MSM has signed an agreement with Ideal Ratings by which the latter will identify the companies whose business are Sharia compliant based on the criteria published by the Accounting and OIFI, especially the Sharia principle 21 related to securities.
The arbitrage opportunity is mostly evident in less liquid stocks with low market depth, and is fleeting.