What is an Order Book?
An order book is an electronic list of all pending buy and sell orders for a specific cryptocurrency trading pair, organized by price level. It shows market depth and provides crucial information about supply and demand at different price points.
Key Components
Bid Side (Buyers)
- Shows all pending buy orders
- Typically displayed in green
- Ordered from highest to lowest price
Ask Side (Sellers)
- Shows all pending sell orders
- Typically displayed in red
- Ordered from lowest to highest price
Order Book Analysis
Market Depth
- Indicates available liquidity at each price level
- Shows potential price impact of large orders
- Helps identify support and resistance levels
Order Flow
- Large orders can signal institutional activity
- Order book imbalances may predict price movements
- Sudden changes can indicate market sentiment
Related Terms
Ready to Start Trading?
Join The Kingfisher community and get access to professional-grade trading tools and insights.