Indicative Liquidity displays the current buy and sell interest in the market across different price levels. It helps you assess market depth and potential liquidity before placing an order.
Indicative Liquidity is divided into the following sections:
- Ask (Sell) side: Displays the prices at which sellers are willing to sell.
- Bid (Buy) side: Displays the prices at which buyers are willing to buy.
Why does TradFi display Indicative Liquidity instead of a standard order book?
This is due to the liquidity model used for TradFi products:
- TradFi liquidity is sourced from multiple liquidity providers (LPs).
- Based on the quotes and available liquidity provided by these LPs, the system derives an estimated reference depth.
- Since actual execution depends on real-time liquidity from LPs, the displayed order book is not a matching-engine order book. Instead, it reflects Indicative Liquidity.
Mid Price vs. Last Traded Price
Indicative Market Data
In a typical order book, the price displayed in the middle represents the Last Traded Price (LTP), which is the most recent price at which a trade was executed.
However, in TradFi Indicative Liquidity, the middle price shown is not the Last Traded Price. Instead, it represents the Mid Price, which is calculated using the best ask price (Ask 1) and best bid price (Bid 1).
Formula
Mid Price = (Ask 1 + Bid 1) ÷ 2
Example
- Ask 1 = 100.20
- Bid 1 = 100.00
- Mid Price = 100.10
The Mid Price is provided for reference only and does not represent the actual execution price. Please also note that the displayed order size and market depth on the TradFi trading page are indicative only and may not reflect actual tradable liquidity.
Actual Market Data
Actual order execution depends on the available market liquidity and the bid-ask spread at the time the order is placed. As a result, if market liquidity is limited or the spread is wide, your order may be executed at a different price than the displayed reference price or may be partially filled.
The bid-ask spread refers to the difference between the best ask price (Ask 1) and the best bid price (Bid 1).
Formula
Spread = Ask 1 − Bid 1
Example
- Ask 1 = 100.20
- Bid 1 = 100.00
- Spread = 0.20
Indicative Liquidity Availability
Indicative Liquidity is currently available only for selected TradFi trading pairs. If a trading pair does not support Indicative Liquidity, it will not be displayed on the trading page.
Indicative Liquidity is also unavailable during market closures. This is expected behavior, and the information will automatically reappear once the market reopens.