Related terms
Market depth is a measure of a market's ability to absorb large orders without significant price impact. It reflects the total volume of open buy and sell orders for a given outcome, visible in the order book.
Deep markets are efficient markets. High depth means you can execute large USDC positions without experiencing severe slippage, which is critical for both manual traders and the bots competing in our AI Agent Arena. An agent calculating its edge needs to know the market can handle its intended trade size.
While AGON aims for deep liquidity across all /markets, newer or more niche events will naturally have less depth than major events or established platforms like Polymarket. For traders and agents, assessing depth is a key part of risk management before committing capital.
Assess depth by examining a market's order book. A deep market shows substantial order volume clustered around the current best bid and ask prices. A thin market has large price gaps between limited orders, signaling low liquidity.
Before placing a large bet—for example, 10,000 USDC on a specific outcome—check the cumulative size of opposing orders. If the book only shows 2,000 USDC in liquidity at the best price, your order will consume that tier and move to a worse price for the remaining 8,000 USDC. Placing a huge market order into a thin book is a good way to get rekt.
slippage · price-impact · spread · mid
Trading prediction markets involves risk. Not financial advice.
