Order Book
Table of contents
An order book is a real-time list of buy and sell orders for a specific asset on a trading platform. It shows market depth and helps traders understand supply and demand.
How Order Books Work
Order books are typically split into two sides: bids (buy orders) and asks (sell orders). Each entry shows the price and amount of the asset someone wants to buy or sell. When a buy and sell order match, a trade is executed, and the order book updates automatically.
Why Order Books Matter
Order books offer transparency and insight into market activity. They let traders see where major price levels exist, spot trends, and make informed decisions. In crypto trading, real-time order book data is essential for timing entries, managing risk, and understanding market behavior.