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What Is a Fragmented Order Book in Cryptocurrency Exchanges?

Liquidity for one asset is split across many exchanges, resulting in shallower order books and wider spreads on each.
Greeks.Live10.11.25

What Is a Fragmented Order Book in Cryptocurrency Exchanges?

A fragmented order book means that the total liquidity for a single cryptocurrency asset is scattered across multiple, independent exchanges. Instead of one deep, centralized pool of bids and asks, traders must consult several smaller, shallower order books.

This fragmentation reduces the effective liquidity available on any single exchange, leading to wider bid-offer spreads and less efficient price discovery.

Why Do Options with Longer Time to Expiration Often Have Wider Bid-Offer Spreads?
In Cryptocurrency Trading, Why Are Bid-Offer Spreads Often Wider for Less Liquid Altcoins than for Bitcoin?
How Does the Aggregation of Order Books across Multiple Exchanges Affect Perceived Depth?
How Do Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) Typically Compare on Spread Size?

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