How Resting Liquidity and Executed Volume Differ

Resting liquidity refers to orders displayed in the order book that are waiting to be executed.

Executed volume represents trades that have actually taken place.

The distinction matters because a large displayed order can be canceled, changed, or consumed, while executed volume provides evidence of completed transactions.

Neither data type tells the whole story on its own.

I use the order book to observe available liquidity and executed volume to study actual trading activity.

Understanding what the data represents helps prevent misleading conclusions.