# Market Order Average Size

## **Overview**

Market order average size is a metric that measures the average size of market orders placed in a given ticker. Market orders are orders to buy or sell the contract at the current market price. The average size is calculated by dividing the total volume of market orders by the total number of market orders placed.

It's important because it can provide insight into the level of buying or selling activity in the market. A high average size indicates that large market orders are being placed, which may suggest that institutional investors or other large traders are active in the market. A low average size, on the other hand, may suggest that retail investors or other small traders are more active in the market.

It also provides an idea about the liquidity of the coin. A coin with a higher average size would indicate more liquidity in the market and vice versa.

It is calculated by simply dividing the total volume of market orders by the total number of market orders placed. For example, if there were 100 market orders placed for a total of $10,000, the average size of a market order would be 100.

It's important to note that the market order average size is a snapshot of a given period of time and it's only one of many factors to consider when analyzing. Traders should consider other fundamental and technical factors along with the market order average size when making trading decisions.\
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In this section we will be focusing on executed orders (orderflow). For more information on resting orders you can look at our [Orderbook](/indicators/orderbook.md) section.

## **Indicator Description**

The market order average size indicator is another orderflow metric that shows the average size of trades that occurred during a specific time period (candlestick).\
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You can access the indicator on the Chart product under the Orderflow & Open Interest.&#x20;

<figure><img src="/files/8xRwTzAi1yWQlaJud4VE" alt=""><figcaption></figcaption></figure>

This indicator can be filtered by the the count of buy trades, sell trades, total trades, and delta during the time period.

* Buy: Average size of market buy orders
* Sell: Average Size of market sell orders
* Total: Average Size of Buy Orders + Average size of Sell Orders
* Delta: Average size of Buy Orders – Average size of Sell Orders

This indicator can be key understanding market sentiment and is an additional way to breakdown buyer and seller activity:&#x20;

* Identifying periods of high trading activity can indicate a potential reversal, a strong support/resistance zone, and other market movements.
* High market order size can indicate activity is coming from institutions and low size can represent retail.&#x20;
* High market order size can possibly indicate areas of high slippage if combined with high limit order count


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