What is an Order Book?
The order book is a list of current orders for a particular cryptocurrency. The list shows what quantity of an asset is being bought or sold and at what price. Order book data is often represented using a simple graph, which shows the current market depth.
What is Market Depth?
Market depth is a key indicator to measure the volume of limit orders in real time. It shows the ability of an exchange to match orders without affecting the price due to slippage.
How Does an Order Book Work?
An order book contains essential buy and sell information that increases the market transparency and help traders determine price discovery. It is being updated in real-time and contains the following information.
- It shows buyer information through a list of bids and the amount of coins buyers wish to purchase.
- It shows seller information through a list of asks and the amount of coins sellers wish to sell.
- It shows the last traded price and mark price.