What is Market Depth?

Market depth generally refers to a specific market's adeptness at absorbing large market orders without changing the price of the underlying security. An assessment of market depth takes into consideration the overall number and breadth of open orders, bids, and offers for a specific asset. If the market depth of an asset is deep (with a large amount of liquidity) it means that a very large order is often needed to change the price significantly. Market depth should also be considered the same as liquidity depth.