Spot Trading

An order book is a digital list that organizes and displays buy and sell orders for a specific asset based on price levels. The interests of both buyers and sellers are represented through the order book. It provides a real-time list of outstanding orders for a specific asset, reflecting the dynamic interaction between buyers and sellers.
 
The order book lists the number of orders at each price point, also known as "depth." This allows for the capture of crucial trading information, effectively enhancing market transparency. Depth and liquidity of the order book play an important role in price discovery.
 
How Does an Order Book Work?
 
Almost all trading platforms use order books to list orders for various assets, such as equities, bonds, currencies, and even cryptocurrencies like Bitcoin. The buy and sell information may be displayed at the top and bottom or on the left and right sides of the screen.

What is an Order book and Market Depth?

A trigger order is an order type that involves presetting an order price and its triggering conditions. Once the latest market price meets the specified trigger price, the system automatically executes the order at the predetermined price. Trigger orders facilitate setting your desired buying and selling levels in advance, enabling you to automatically secure profits or limit losses without constantly watching the market.
 
‭• Trigger Price: When the latest price reaches the trigger price, the order will be triggered to be placed at a predetermined order price, awaiting execution.
 
‭• Buying Price or Selling Price: This is the price at which you will buy or sell. Once a trigger order is triggered, it will be placed at the preset order price, which can be either a limit order or a market order.
 
‭• Order Amount: The order amount when the order is triggered.

What is a Trigger Order?

<h2 id="h_01HS82VXAH84847ZGQTPYSNSZV">What is a Market Order?</h2>
 
A market order is executed as quickly as possible at the current market price after the user places the order.
 
When placing a market order, you can select “Order amount” or “Order total” to buy or sell.
 
For example, if you wish to buy or sell a specific amount of Bitcoin, you are recommended to select “Order amount”. However, if you want to buy Bitcoin with a specific amount of funds, like 10,000 USDT, using the “Order total” to place a market order is a better option.
 
Typically, these two features can be used to place both buy and sell orders. However, when you place the order after the system calculates the amount you can get, the asset price may undergo significant changes, and the assets you receive from the order may differ from the amount calculated before placing the order. In some special cases, the order would fail. This usually happens when the buy/sell ratio is close to or equal to 100%.
 
<h2 id="h_01HS82W25FR1A42XVT9ENC4HNQ">What is a Limit Order?</h2>
 
A limit order is an order you place in the order book with a specific price limit. It will only be executed when the market price reaches your limit price (or better). You can use a limit order to buy assets at a lower price or sell them at a price higher than the current market price.

What are Market Orders and Limit Orders?

The cryptocurrency market is comprised of makers and takers. Market makers place orders that are added to the order book and not executed immediately. For instance, placing a limit order to sell 1 Bitcoin when the price reaches $50,000. Such orders create liquidity in the market, allowing other traders to buy or sell Bitcoin instantly when conditions are met. Traders who execute buy or sell orders immediately are called takers. In other words, takers are the ones who fulfill the orders created by the makers.
 
Takers:
 If your order is executed immediately before it goes on the order book, you are a taker. This applies whether the order is fulfilled partially or fully.
 
Trades from market orders are always taker transactions because market orders never go on the order book. These trades "take away" volume from the order book, hence they are considered taker trades.
 
 
Makers:
 When you place an order that enters the order book, either partially or fully (such as a limit order), any subsequent trades from that order are maker trades.
 
These orders add volume to the order book, helping in market making, and are thus considered maker trades for any subsequent transactions. However, please note that you can also use limit orders to act as a taker.

What are Market Makers and Takers?