TECHNICAL CONCEPTS
Order Book
Definition
An order book is a real-time list of buy and sell orders for an asset, organized by price level. It shows market depth and liquidity, common in centralized exchanges but rare in DeFi AMMs.
Example
Example
On Coinbase Pro, the ETH/USD order book shows all pending buy orders below current price and sell orders above current price.
Risks to Consider
Risks
- Order manipulation
- Low liquidity gaps
- Centralization