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The Engine Behind Crypto Trading
An order book is a real-time list of buy and sell orders on a cryptocurrency exchange. It displays the prices and quantities of assets that traders are willing to buy or sell.
The order book consists of bids (buy orders) and asks (sell orders). The highest bid and lowest ask determine the market price of an asset.
A deep order book with high liquidity results in smoother trading, while a thin order book can cause price volatility. Traders analyze order books to make informed trading decisions.
Understanding order books helps traders anticipate market movements and execute trades more efficiently. It is a crucial tool for anyone involved in crypto trading.