Definition
The order book is an electronic list of buy and sell orders organized by price level. It shows market depth - how many shares are available at each price. Traders analyze order book dynamics to gauge supply/demand and potential price movements. Level 2 quotes show detailed order book data.
Example
The order book shows 10,000 shares to buy at $50.00, 5,000 at $49.95, and 15,000 to sell at $50.05.
FAQ
What is Order Book?
A list of all outstanding buy and sell orders for a security.
Why is Order Book important?
Order Book helps investors evaluate trading mechanics and make more informed decisions.