TRADING & AMMS
Order Book
Definition
An order book is a real-time electronic list of buy and sell orders for an asset, organized by price level. It shows market depth and available liquidity at different price points.
Example
Example
On a centralized exchange like Coinbase, the ETH/USD order book shows all pending buy orders below current price and sell orders above.
Risks to Consider
Risks
- Order manipulation
- Liquidity gaps
- Centralized control