A real-time list of buy and sell orders for a particular asset, displayed by price level and volume. It provides insights into market depth, liquidity, and potential price movements. Buy orders (bids) are listed on one side, and sell orders (asks) on the other. Traders use the order book to gauge supply-demand dynamics and anticipate breakout or support/resistance zones. In fast-moving markets, large order imbalances can signal impending volatility. Order books are essential tools for day traders, scalpers, and algorithmic systems looking for precision in trade entries and exits.
Example:
A trader analyzes visible buy and sell orders to assess short-term supply and demand pressure.
