DOM Trading For Beginners

The DOM (Depth of Market) shows active buyers and sellers at every price level. It’s powerful — but most beginners stare at it like a slot machine and get destroyed. Here’s what it actually means and how to use it correctly.

1. What the DOM Actually Shows

The DOM displays three things:

Bids (buyers waiting below the current price)
Asks (sellers waiting above the current price)
Last traded price

Each row represents a price. Each number shows how many contracts are sitting there waiting to be executed.

2. What the DOM Does NOT Show

True intent (people spoof orders all day long)
Who is placing the orders
Whether an order will cancel before it hits
Future price direction

The DOM shows resting liquidity — not guaranteed trades.

3. Why the DOM Moves Fast

The numbers update constantly because:

Algorithms add and cancel orders rapidly
Market orders are hitting the book
HFTs adjust quotes every few milliseconds

This is why beginners get hypnotized by the flashing numbers.

4. How Fills Happen On the DOM

Market Buy Order:

Hits the SELL side (the asks).

Market Sell Order:

Hits the BUY side (the bids).

Limit Orders:

Sit in the queue until price trades THROUGH your level.

Stop Orders:

Don’t sit on the DOM — they trigger only when price touches them.

5. How To Use the DOM As a Beginner

1. Use it to Get Cleaner Fills

If spread is 1 tick and liquidity is strong, DOM fills are smooth. If spread widens or liquidity thins, size smaller or avoid market orders.

2. Watch Liquidity Pools

Big resting orders at a price level often act as magnets. Price tends to move toward size, then remove it.

3. Watch Where Orders Disappear

If size vanishes before price hits it, the liquidity was fake (spoofing).

4. Don’t Stare at Every Tick

DOM scalping requires years of experience. You’re using it for fills and liquidity only — not prediction.

6. A Clean DOM Setup (No Clutter)

Bid size column
Ask size column
Last traded price highlighted
NO heatmaps
NO volume shading
NO ladder colors except basic blue/red

Clean DOM = clean decisions.

Bottom Line

The DOM is not a crystal ball. It’s a tool for seeing where liquidity sits and how clean your fill will be. If you use it like a pro — not a degenerate clicking every tick — it becomes one of the most useful tools in futures trading.