Volume and Liquidity

1.7 Volume and Liquidity Metrics for Enhanced Decision-Making

At the bottom of the interface, Insiderdepth presents aggregated market statistics, including trades per minute (e.g., 790 trades/m), volume per minute (e.g., 458.2K), and liquidity per minute (e.g., 58.2K). These metrics provide a real-time snapshot of market activity, helping users evaluate the intensity of trading and the depth of liquidity. High trading volume paired with stable liquidity typically indicates a robust market environment, conducive to executing large trades without significant slippage. Conversely, a sudden spike in volume with low liquidity may signal potential volatility or manipulation risks, prompting traders to exercise caution. For example, a trader observing a volume spike to 458.2K with liquidity dropping below 50K might infer increased market turbulence, adjusting their position size accordingly.

These metrics enhance decision-making by providing a clear, quantitative foundation for assessing market conditions at any given moment.