Transaction volume answers "how much has happened," but does not equal "whether the transaction can be successfully completed."

Trading volume is an important record of market activity, but it cannot independently indicate the quality of quotes at a given moment. Two trading venues may display similar trading volumes, yet due to differences in bid-ask spreads, order book shapes, and individual trade sizes, they can present very different market conditions.

The Spread Provides Cost Clues

The distance between the buy price and the sell price can help readers understand the tightness of the visible quotes. It is important to note the corresponding asset version, quote currency, sampling time, and calculation method. A wider spread is a phenomenon that requires further observation and should not be directly equated with a risk conclusion.

Depth Explains How Much Visible Demand the Order Book Can Handle

Order book depth is usually calculated around a certain price range. When reading depth, one should also confirm the range, currency, update time, and whether only part of the orders is displayed. It describes the visible order book, not the total available liquidity in the market.

Look at Multiple Instances with the Same Criteria, Rather Than Providing a Universal Threshold

Rather than giving a "good or bad" standard applicable to all assets, it is more reliable to track changes under the same asset, within the same price range, and over a similar time period. This way, one can determine whether there have been verifiable changes in market conditions.

Conclusion

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