The order book is the list of all the current buy and sell orders for a crypto asset. It shows you who is willing to buy and sell, at what prices, and for how much.
- Buy orders (bids): People posting the maximum price they’re willing to pay for the crypto.
- Sell orders (asks): People posting the minimum price they’re willing to sell the crypto for.
These orders are constantly updated in real time as users place, cancel, or fill orders.
When a buy order matches a sell order (meaning the prices overlap), the trade happens automatically.