Market By Price (MBP)microstructure

Market By Price (MBP) is a market data feed that displays the depth of the order book organized by price levels, showing the total quantity available at each price rather than individual orders. It is used to gauge liquidity at specific prices and to visualize how liquidity changes across price levels.

Meaning

Market By Price (MBP) is a market data feed that presents the depth of the order book by price levels, aggregating the available size at each price rather than listing every individual order. It is commonly provided by exchanges as part of depth-of-market data and is often contrasted with Market By Order (MBO), which shows each order separately.

How it is used

Traders and platforms use MBP to assess liquidity at discrete price points. By scanning the visible price levels, a user can estimate how much volume could be accessed if prices move to or through particular levels. Because MBP aggregates quantities at each price, it provides a quick snapshot of where liquidity concentrates and how it may shift as orders are added, canceled, or executed. MBP feeds are frequently integrated into electronic trading tools and can support short-term decision making by highlighting depth changes over time.

Context

MBP feeds may cover a single venue or aggregate across multiple venues, depending on the data provider and configuration. The information updates in real time as the order book changes, so displayed levels can vary rapidly during active markets. Users should understand that MBP shows current available quantity at each price level, not the identity of individual orders.

Example Usage

In a streaming MBP feed, at $100.50 the aggregated size is 12,000 shares, at $100.75 there are 8,500 shares, and at $101.00 there are 4,000 shares.

Related Terms

Market By Order (MBO) · Depth of Market (DOM) · Level 2 Quotes · Order Book · Liquidity · Bid-Ask Spread