Order flow
What is Order Book Thinning and why does it consistently happen ahead of major macroeconomic events (e.g., FOMC minutes)?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Order book thinning is reduced resting liquidity on the DOM, commonly occurring before major scheduled events as market makers widen spreads to limit event-driven risk exposure.
How it works
Ahead of FOMC releases, liquidity providers pull size to avoid adverse selection from a sudden volatility spike, leaving the book vulnerable to large, fast price swings.
An example
DOM depth drops 80% minutes before FOMC.
Risk & limitations
Thin books cause extreme slippage; avoid trading through releases.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.