What is an order book?

An order book is a list of orders that presents different offers from buyers and sellers for a specific security. It shows the prices and volumes that people in the market are willing to buy and sell the security for. Order books were originally used in stock exchanges but are now becoming popular in cryptocurrency trading as well (i.e., Bitcoin ).

What is'order book'?

What is 'Order Book '. An order book is an electronic list of buy and sell orders for a specific security or financial instrument, organized by price level. An order book lists the number of shares being bid or offered at each price point, or market depth.

What is the order book indicator?

The Order Book indicator shows both supply and demand and market sentiment. As Forex and CFD traders, the prices of the instruments we trade are derived from large exchanges such as CME or CBoT and others. Whales have the most power to move the market, and we can be sure they are not trading with a retail Forex broker like you and I.

What is the difference between an order book and order cluster?

A cluster of large buy orders at a specific price may indicate a level of support, while an abundance of sell orders at or near one price may suggest an area of resistance. An order book is dynamic and constantly updated in real-time throughout the day.