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.
Do you use it?
- the platform and what you watch
- the signals you act on
- whether the DOM matched actual price behaviour
The bid, ask and slippage guide explains what the quoted depth actually is.
Background: Bid, ask and slippage: why your order fills at a different price
Why buy trades open at one price and close at another, why a stop can trigger when the chart never touched it, and how slippage happens.
Why did my stop-loss trigger when the price on the chart didn't reach it?
Charts usually show the bid price, but a sell position's stop is triggered by the ask. If the spread widened, the ask could have touched your stop while the bid line stayed away from it.
What is slippage?
The difference between the price you expected and the price your order was filled at. It is most common in fast or thin markets, such as around news releases.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…