edgedepth

VPIN — flow toxicity

What the VPIN gauge approximates, how to read high and low readings, and how it pairs with the liquidation map.

VPIN (Volume-synchronized Probability of INformed trading) is a measure of flow toxicity: how one-sided and informed the recent order flow looks. EdgeDepth computes it in real time on every pair.

Reading it

  • Low VPIN — balanced, two-sided flow. Market makers are comfortable; spreads stay tight.
  • High VPIN — persistently one-sided flow. Liquidity providers are being run over and tend to widen or pull quotes, which is exactly when displacement gets easier.

How to use it

VPIN is a gauge, not a signal. It doesn’t say which way — it says conditions are flammable. Read it next to the liquidation heatmap: high toxicity while price sits under a dense liquidation cluster is a very different situation than the same reading in the middle of nowhere.

Like everything else in the terminal, VPIN is recorded and re-computed identically in replay, so you can study how it behaved into any archived event.