Reading the Depth Chart

One of Bullish’s unique value propositions is the Order Book Depth, which you will find next to the Price Chart on the Trade screen.

Depth Chart in Trade screen

Overview of the Depth Chart

The Depth Chart reflects market depth in real-time. Our Depth Chart combines the functionalities of an automated market maker (AMM), typically found in Decentralized Finance (DeFi), and a central limit order book. This integration powers our proprietary Bullish Hybrid Order Book, providing stability across variable market conditions.

At its core, the Bullish AMM uses a mathematical formula to price its assets. Rather than relying on traditional buy and sell limit orders, Bullish liquidity for a particular asset pair (e.g. BTC/USD) is priced according to the assets held in the relevant Bullish Liquidity Pool (e.g. BTC/USD Liquidity Pool).

Important: Earning via Bullish Liquidity Pools is currently only available to institutional customers.

Components of the Depth Chart

Buy wall

The left (green) side of the chart shows the cumulative value of the buy orders placed on Bullish at a given price point for a particular asset pair below its current market price.

Sell wall

The right (red) side of the chart shows the cumulative value of the sell orders placed on Bullish at a given price point above the asset pair’s current market price.

Horizontal Axis

This axis represents the price points at which buy and sell orders are placed for a particular asset pair.

Vertical Axis

The vertical axes on both sides of the chart represent the total volume of an asset pair being bought and sold.

Price range

You can use the “+” and “-” buttons at the top of the chart to shorten or widen the price range displayed. You can also use your mouse or trackpad scrolling functionality to zoom in and out.

Market Depth Indicator

This indicator provides visibility into order sizes expressed in the base currency of the asset pair, executed prices, and notional values across buys (in green) and sells (in red) when hovering over either side of the chart.

Understanding the Bullish AMM

While traditional limit orders may fluctuate drastically, AMMs - combined with our traditional limit order book - greatly increase the depth of liquidity when trading across highly variable market conditions.

Instead of relying on traditional bids and asks from a central limit order book, the AMM provides deeper liquidity by pricing assets based on the assets held in the Bullish Liquidity Pools (BLPs). The more assets deposited in a BLP, the larger the trades that the AMM can support.

As such, customers trade against a particular liquidity pool as opposed to interacting between traditional buyers and sellers.

Reading the Market Depth Indicator (buy side)

Trade prices are deterministic. For instance, hovering over the green bid side of the chart in our example below indicates that if a customer wants to sell 966.63 BTC immediately at a current market price of US$43,738, the BTC/USD market price would then move to US$40,004, which would cost approximately US$40.2 million.

The AMM would provide 965.72 of the 966.63 BTC, displayed in gray next to the total order amount, and the limit order book would provide the rest (i.e. 0.91 BTC.)

Market depth indicator buy side

Reading the Market Depth Indicator (sell side)

Similarly, if a customer buys 167.06 BTC immediately, its market price would move to US$43,989.80, which would cost approximately US$7.3 million.

Market depth indicator sell side

Placing limit and stop-limit orders

You can use the Depth Chart to indicate a specific price point at which you would like to place a limit or stop-limit order.

Once you have selected an order type, simply hover over either side of the chart based on the order you wish to place (buy or sell) and choose a specific price from the chart. This will automatically fill your limit price in your order.

Important: Automated market making is available within the upper and lower price boundaries of our range-bound liquidity pools and for our standard liquidity pools. Returns may vary with our range-bound versus standard liquidity pools. Learn more by reviewing important information about our range-bound and standard liquidity pools at https://bullish.com/legal/range-bound-liquidity-pools. 

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