What Is an Order Book? The term order book refers to 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 on or offered at each price point, or
What is the purpose of an order book?
An order book is the list of orders (manual or electronic) that a trading venue (in particular stock exchanges) uses to record the interest of buyers and sellers in a particular financial instrument. A matching engine uses the book to determine which orders can be fully or partially executed.
How does the order book work?
What is an order book? An order book is a list, typically electronic, of buy (bid) and sell (offer) orders, including the number of shares to be bought or sold. The order book is organized by price level. This helps keep track of the level of interest for a tradable instrument and shows the market depth.
