What is Order book? Everything about Order book
It does not matter what you trade in the trading markets, in any case you need to have an order book to trade currency pairs, stocks, digital currencies and… in Forex. Do you know exactly what an order book is? If you are familiar with large trading markets such as Forex, you are probably familiar with the name of order book; In order to get to know you dear ones better and to know exactly what an order book is; we have prepared and arranged this article. Please stay with Zand Traders until the end. We have brought you everything you need to know about order book.
Familiarity with the order book
In the trading markets in general, order registration or order book is a vital issue and you need it for the transactions to be controlled. An order book is a place where all traders place an order and contains information about traders buying and selling. An order book is a well-organized, well-structured digital data source; through the order book, you can track the flow of orders and analyze the trading strategy.
An order book is a dynamic source of information that can change and update its data in real time; it can also have different types, depending on the data source. The different types of order book are open order book, closed order book or continuous order book, which traders can manage each of them separately.
In this part of the article, we have mentioned some things in order to get acquainted with the order book, and in the next section, we will say more precisely what an order book is, and we will provide you with more interesting and useful information. Please stay with us.
What is order book?
To find the answer to the question “What is order book?” You need to try to imagine the following: A list of trades created and displayed with a digital or manual interface, plus trading tools such as stocks, currencies, and so on; transactions are filtered based on price level and volume.
Here the role of the order book is to show how deep the market is, in other words, we get an indicator that shows real-time accurate information about trades in a particular period and updates it regularly. For this reason, the order book is also referred to as continuous books.
As a rule, in large trading markets such as Forex, buyers and sellers use this tool so that they do not hide anything from each other and nothing is hidden behind any exchange. An order book helps traders to identify buyers and sellers in the markets.
It is good to know that traders who do not want to be known choose the so-called dark pools, and mostly include hidden trades that are not specified in the order book. In other words, traders are no longer able to see them; this creates a number of barriers to trading, including the fact that a trader cannot identify whether an asset belongs to an organization or an individual.
It goes without saying that some traders prefer to trade outside of the order book and believe that trading in this way has a major advantage, which is that the price is determined directly between the two parties without intermediaries; Of course, this strategy also has a substantial problem, and that is related to time constraints.
By this part of the article, you have definitely fully understood what an order book is, and you are certainly somewhat aware of the importance of the order book indicator; In the continuation of the article, join us to get acquainted with everything about order book and get answers to many of your questions about this valuable indicator in the trading markets.
How to use order book?
We have told before that order book is a dynamic indicator that update order information in real time instantly. In this tool, a trader can adjust his preferences to match automated orders. For example, ordering can be done according to the demand and supply of assets. Depending on the current market price level, traders may buy or sell assets; in this way, it is possible to set a specific price to identify the level of purchase or safe level of sale for traders, and when the price approaches that level, the system automatically completes the order.
After getting acquainted with the overbook indicator and how to use it, now it’s time to get acquainted with its components; so stay with us.
Familiarity with the components of the order book
In a way, the order book indicator is a complex tool and includes various components that traders are familiar with and consider when trading. By reading this section, you will understand what the order book has; we have introduced its main components to you.
-Seller and Buyer Sides: On the seller and buyer side, the market price record is depicted. Therefore, the buyer and the seller are the two main participants in this section.
-Ask and Bid: This component can be used instead of the first component (seller and buyer). Here the bid refers to a number of stocks while Ask is to identify the stock price.
-Prices: This component of the order book is where both parts of the transaction, the buyer and the seller, are involved. An order book offers a valuable profit for sellers and buyers by highlighting their price and volume.
-Cumulative Amount: When you sell a particular asset at different prices, this component represents the total column of assets sold.
-Visualization: In fact, the Visualization component ensures how buyers and sellers interact in the market. This visual display can be displayed in various forms including charts; and an order book user can choose the type of visual display so he can make better and faster decisions.
The order book indicator has advantages too. Want to know what the benefits of the order book are? So please stay with us.
What are the advantages of an order book?
An order book indicator has strategies and tactics that can be very useful for traders. For example, it can display essential data in real time; In addition to trading volume, traders can also track buying and selling prices and so on.
In fact, the main idea of using an order book is to be aware of market trends in a particular period and also to understand the dynamics in the market.
In order to enjoy the benefits of an order book order book, you must be fully acquainted with its components, and in addition, you must be able to understand it, or in other words, be able to read it; Because the order book is not just a chart that shows all the necessary information, but as we said, you can pull out the very important content that helps you succeed in trading.
In addition, the order book has different shapes and configurations that can be customized depending on the preferences of traders.
These are just some of the goal setting shareware that you can use to get started.
After getting acquainted with the order book and knowing what the order book indicator is, how it works and what is necessary to use it, it is necessary to participate in the order book training course in order to use it properly and enjoy its benefits. After passing this training course, do not have any problems with using this indicator and be more successful in the transactions you make.
A final word about the order book
In this article, we tried to provide you with materials in order to get acquainted with the order book and to know what an order book is. We hope that the issues raised have been useful to you dear ones.
Now you know everything about the order book, its components and you know this indicator well. But to use the order book indicator, you need to receive the necessary training.
In the Zand Traders team, with the benefit of experienced specialists in the field of trading, we provide the necessary training in the field of trading and Forex trading for you dear ones. Please contact us for more information, registration and participation in Zand Traders training courses.
