How it works

The order book shows bids from buyers and asks from sellers. Market depth and order size can affect how easy it is to trade without moving the price.

Why it matters

Order books help explain liquidity, spreads, slippage and the difference between market and limit orders.

Related pages

Compare exchanges or read about liquidity and slippage.

How to use this term

Use order-book data to understand where buyers and sellers are waiting.

What to check

Check bid-ask spread, depth near the current price and whether your order size could move the market.