What Is a Crypto Order Book?
A crypto order book is a real-time list of all open buy and sell orders for a specific cryptocurrency on an exchange. The buy side, or bids, shows the quantity of the asset buyers are willing to purchase at various prices.
The sell side, or asks, shows the quantity sellers are willing to part with at different price points. The order book provides a transparent view of market depth and liquidity.
The difference between the highest bid and the lowest ask is known as the spread.
Glossar
Crypto Order Book
Depth ⎊ : The visible structure of the book provides a real-time measure of immediate market liquidity for crypto derivatives.
Order Book
Depth ⎊ An order book represents a listing of buy and sell orders for a specific cryptocurrency, option contract, or derivative, displaying price and quantity at various levels.
Thin Order Book
Book ⎊ A market condition characterized by a significant lack of resting limit orders near the current bid-ask midpoint, meaning there is very little available volume to absorb incoming trades, leading to severe price dislocation with minimal order submission.
Buy and Sell Orders
Execution ⎊ Buy and sell orders represent the foundational mechanisms for price discovery and trade realization within cryptocurrency, options, and derivative markets, functioning as explicit instructions to execute a transaction at a specified price or better.