Crypto exchange order book screen

A real-time order book on a cryptocurrency exchange displays buy and sell orders for Bitcoin, Ethereum and other altcoins, with market depth and spread.

About this subject

An order book, or order book, is the heart of any cryptocurrency exchange. It lists all open buy (bids) and sell (asks) orders for a given trading pair, such as BTC/USDT. On the screen, bids appear in green, sorted from highest to lowest price, while asks in red go from lowest to highest. The spread, the difference between the best bid and best ask, is a liquidity indicator: narrow spreads indicate a liquid market, common in pairs like Bitcoin against stablecoins. Market depth, visible in area charts, shows the quantity of orders at each price level, helping traders identify support and resistance.

Frequently Asked Questions

What does spread mean in the order book?

Spread is the difference between the highest bid and the lowest ask. A small spread indicates high liquidity.

How to interpret market depth?

Market depth shows the volume of orders at each price. A large concentration of orders at a level can act as support or resistance.

Why is the order book important for traders?

It allows real-time visualization of supply and demand, helping to predict short-term movements and execute orders with less slippage.