How does order book work?

how does order book work?

An order book is a real-time list of buy and sell orders for a particular asset. It displays the current bid (buy) and ask (sell) prices along with the corresponding quantities that traders are willing to buy or sell at those prices.

The order book provides transparency into market dynamics by revealing the supply and demand for the asset at various price levels. Traders can use order books to assess market sentiment, identify potential price levels of support and resistance, and make informed trading decisions based on order flow and liquidity.

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