Depth of market in forex: do you read the DOM?

The DOM shows resting orders at each price — but in retail forex, your broker's DOM is its own liquidity, not the whole market. Some traders swear by it; others call it theatre.

Depth of market in forex: do you read the DOM? — bid-ask spread diagram
The bid-ask spread on a currency pair

Do you use it?

  • the platform and what you watch
  • the signals you act on
  • whether the DOM matched actual price behaviour
Depth of market in forex: do you read the DOM? — risk-reward diagram
A risk-reward ratio of 1 to 2

The bid, ask and slippage guide explains what the quoted depth actually is.

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