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What is the importance of the order book in digital asset exchanges?

avatarBenjamin TongDec 25, 2021 · 3 years ago1 answers

Why is the order book considered important in digital asset exchanges and how does it affect trading?

What is the importance of the order book in digital asset exchanges?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    At BYDFi, we understand the importance of the order book in digital asset exchanges. It serves as a valuable tool for traders, providing them with real-time information on market depth and liquidity. The order book allows traders to see the current bid and ask prices, as well as the volume of orders at each price level. This information helps traders determine the best entry and exit points for their trades, and enables them to execute their strategies more effectively. The order book also facilitates price discovery, as it reflects the collective actions and intentions of market participants. In summary, the order book is a fundamental component of digital asset exchanges, and its importance cannot be overstated.