How does the order book work in the context of cryptocurrency trading?

1 answers

• Ion CiocaJul 07, 2024 · a year ago
  The order book is a fundamental part of cryptocurrency trading. It acts as a central hub where all the buy and sell orders are recorded. When a trader wants to buy or sell a cryptocurrency, they can check the order book to see the current market conditions. The order book displays the prices and quantities at which traders are willing to trade. It shows the highest bid price and the lowest ask price. The bid price is the highest price at which a buyer is willing to buy, while the ask price is the lowest price at which a seller is willing to sell. The order book helps traders determine the best price at which to execute their trades. It also provides insights into the market sentiment and liquidity. Traders can use the order book to identify support and resistance levels and make informed trading decisions.
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