The Order Book shows the current market depth. "Market Depth" refers to the ability of the market to keep prices unchanged when undertaking large transactions. The depth seen in the chart reflects that at certain prices, the real-time outline of buyers and sellers can be clearly seen in the order book awaiting execution.
The Red prices represent the selling price, while the Green prices represent the buying price.
The Quantity (Size) represents the number of contracts at the stipulated price, while the Total represents the accumulated number of contracts accordingly.
The current best ask price is "Sell" USD 16,616.6, and the best bid price is "Bid" USD 16,616.5. If we want to increase the price of Bitcoin to USD 16,616.7, then we must buy all of the 0.174 BTC at USD 16,616.6 drive the price of Bitcoin up to USD 16,616.7.
The above tracking method applies similarly to the other impression ratios that the trading pair supports showing.
The role of the Order book:
- Determine the present level of market movement for buying and selling through the size of the orders. Generally, the larger the entrusted buy order, the higher the enthusiasm for buying and the price will be more prone to rise. Conversely, the larger the entrusted sell order, the higher the enthusiasm for selling and the price is likely to fall.
- Determine the price fluctuations through the order price difference
You did not succeed in buying (selling) at a certain price, but you can also trade at next available prices, therefore the price fluctuation is small. If there is a large difference, it means that there is a large difference between the prices of two adjacent orders. If there is a large amount of transactions at this time, price fluctuations are likely to occur.
The depth chart represents the number of pending orders to be filled, and it is possible that traders may cancel the orders before execution, hence predicting the trend completely according to the depth chart may not be possible. Therefore, always trade cautiously.