Order book
In short
The order book lists all open buy and sell orders on an exchange, sorted by price. Where the two sides meet, the current price forms.
Deep books (much volume near the price) mean stable execution; thin books mean slippage. A look at the book reveals more about real liquidity than any marketing number.
What are "bid" and "ask"?
Bid = highest buy offer, ask = lowest sell offer. The difference is the spread.
Related terms
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