Skip to main content
Learn

What Is the Fundamental Difference between an Order Book and an Automated Market Maker (AMM)?

Order book matches individual buy/sell orders; AMM uses a liquidity pool and an algorithm to determine price and execute trades.
Greeks.Live17.11.25

What Is the Fundamental Difference between an Order Book and an Automated Market Maker (AMM)?

An order book (used by CEXs) is a list of open buy and sell orders (limit orders) placed by individual traders. Trades occur when a buy order matches a sell order.

An AMM (used by DEXs) is a smart contract that holds a liquidity pool. Trades occur against this pool, with the price determined algorithmically by the ratio of assets in the pool, not by matching individual orders.

How Does a Public Crypto Exchange Match Buy and Sell Orders?
What Is the Difference between an Order Book DEX and an AMM-based DEX?
What Is the Difference between an AMM and a Central Limit Order Book (CLOB)?
What Is the Role of a Matching Engine in a Centralized Exchange?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.