How to Read the Order Book
The order book is a real-time list of all open buy and sell orders for a trading pair. Understanding it is essential for making informed trades.
Structure
The order book has two sides:
- Bids (Buy Orders) — Shown in green. These are orders from traders wanting to buy at a specific price or lower.
- Asks (Sell Orders) — Shown in red. These are orders from traders wanting to sell at a specific price or higher.
Each row shows:
| Column | Description |
|---|---|
| Price | The price per unit |
| Amount | Quantity available at that price |
| Total | Cumulative volume up to that price level |
Bid-Ask Spread
The spread is the difference between the lowest ask and the highest bid. A tight spread indicates high liquidity and efficient pricing. A wide spread may indicate low liquidity or high volatility.
Example: If the highest bid is 64,990 and the lowest ask is 65,010, the spread is 20 USDT.
Reading Depth
The horizontal bars behind each row represent the cumulative volume at each price level. Larger bars indicate more orders stacked at that price, often called buy walls or sell walls.
- A large buy wall may indicate strong support at that price.
- A large sell wall may indicate resistance.
Depth Chart
Click the Depth tab to see a visual representation. The green area shows cumulative buy orders and the red area shows cumulative sell orders. The steeper the curve, the more liquidity at those prices.
Tips
- Watch for large orders appearing and disappearing — this can signal market manipulation (spoofing).
- Use the order book to estimate slippage before placing a large market order.
- Combine order book analysis with chart patterns for better trade decisions.