Order book explained | Trading concept to know

Key Takeaways

in this video we're gonna talk about the order book the order book is gonna be the first thing that you really need to understand before trading begins so let's have a look now the order book is detailed right here what the order book is is the set of all open orders that currently exist on the GDX marketplace one prominent feature that you're going to notice is that it appears that the order book is partitioned into two groups now that's because it is we have on the top in the red we have the sell orders in on the bottom in the green we have the buy orders now looking just here in the middle we see USD spread and we see that that value is one cent now the spread is the difference between the lowest sell order in the highest buy order so you're gonna have some spread in the middle and that's gonna be no-man's land that's gonna be the distance between the two order books or the two parts of the order book now just some terminology here the sell side order book these are all called asks because all of these orders are orders that bitcoin holders in our case are asking particular price for their Bitcoin so these are called asks now on the bottom on the buy side in the green these are called bids because these are bidders these are individuals wanting to buy Bitcoin from the Oscars or the holders of the Bitcoin now at the top we can see that we have two columns we have a market size and we have a price at each price we have a market size now notice that these prices are price bucket so this is one bucket starting at four thousand two hundred twenty-five and we can see that these size of this bucket is fifteen Bitcoin it doesn't this isn't necessarily one person but this is all the orders in the market at this price represent 15 Bitcoin so if you add up all the orders at this price that ourselves we have the total amount of fifteen Bitcoin available for sale at this price 4225 now as we go down in each bucket we have a new price and we have a different potential size so this represents the market supply on the gtex exchange in the GX marketplace this is the supply to the market available for sell at each price now if we flip to the buy side we see we have the same values we have for each price we have a size and now this is market demand at each price there's a particular demand willing buyers ready purchase at that particular price so if there becomes a seller at that price than the GTX exchange is going to match those to facilitate that trade between those individuals the size at that particular price will adjust accordingly I hope this video was helpful please like the video subscribe and support this deal is a channel thank you