medium · Order Flow Analysis market-mechanics-execution
In market microstructure, why is traded volume considered more reliable than displayed volume in the Limit Order Book (LOB)?
- Traded volume is only updated once per minute, making it easier to analyze.
- Displayed volume is always larger and more significant for price direction.
- Displayed volume is hidden from retail traders, while traded volume is public.
- Traded volume represents committed capital that has already executed.
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