What is Order Book?

An order book is an electronic list of buy and sell orders for a specific security, asset, or financial instrument (or in the blockchain industry, a specific cryptocurrency asset) organized by price level. Order books are typically accessed through an exchange service provider's online interface — such as a computer or mobile device — and help traders and investors improve market transparency by providing critical trading and investment data. An order book is composed of the number of shares or financial assets (or tokens) being bought and sold at specific prices in a sequential order (with the green portion of the interface being the buy list, and the red portion, the sell list).