💧 High volume doesn’t mean liquidity at any price.
In a market of $BTC , volume tracks the amount traded over a period; depth shows the orders available at different prices.
A large trade may find little available at the expected price and execute across several price levels. The difference between the expected price and the average price received is called slippage.
It can be favorable or unfavorable. Depth, trade size, and volatility all play a role.
That’s why two markets for the same asset can behave differently.
Which concept confused you the most: volume, depth, or slippage?
Source: Binance Academy — Liquidez y deslizamiento
#bitcoin #Criptomonedas
The author may receive rewards from Binance.
In a market of $BTC , volume tracks the amount traded over a period; depth shows the orders available at different prices.
A large trade may find little available at the expected price and execute across several price levels. The difference between the expected price and the average price received is called slippage.
It can be favorable or unfavorable. Depth, trade size, and volatility all play a role.
That’s why two markets for the same asset can behave differently.
Which concept confused you the most: volume, depth, or slippage?
Source: Binance Academy — Liquidez y deslizamiento
#bitcoin #Criptomonedas
The author may receive rewards from Binance.