{"id":2977,"date":"2024-10-22T12:14:21","date_gmt":"2024-10-22T12:14:21","guid":{"rendered":"https:\/\/apex-aiexperts.com\/?p=2977"},"modified":"2024-10-22T12:14:21","modified_gmt":"2024-10-22T12:14:21","slug":"what-is-an-order-book","status":"publish","type":"post","link":"https:\/\/apex-aiexperts.com\/es\/what-is-an-order-book\/","title":{"rendered":"\u00bfQu\u00e9 es un libro de pedidos?"},"content":{"rendered":"

In the crypto market, most crypto traders and investors buy and sell cryptocurrencies on a centralized exchange<\/a> (CEX).<\/p>\n\n\n\n

A key concept that you should understand before placing your first crypto trade on an exchange is the \u201corder book\u201d<\/strong>.<\/p>\n\n\n\n

An order book offers a real-time \u201cbehind the scenes\u201d view into the oferta y demanda<\/strong> of a particular cryptocurrency.<\/p>\n\n\n\n

In this lesson, I will discuss the purpose of a crypto exchange\u2019s order book and how it is used to execute trades.<\/p>\n\n\n\n

What is an order book?<\/h2>\n\n\n\n

An order book is a list<\/strong> of all the pending (or \u201copen\u201d) buy and sell orders that are currently available for a specific trading pair.<\/p>\n\n\n\n

The order book is p\u00fablico<\/strong>, allowing all users on an exchange to see the orders in the market.<\/p>\n\n\n\n

As traders add, remove, change, and execute orders, the order book will change<\/strong>.<\/p>\n\n\n\n

For example, a crypto exchange could have an order book for the BTC\/USD trading pair.<\/p>\n\n\n\n

The order book will have all the buy and sell limit orders that customers have placed on the exchange to either buy or sell bitcoin (BTC) for U.S. dollars (USD).<\/p>\n\n\n\n

Since the price of bitcoin (BTC) is using USD as the quote currency, this means that BTC is priced in USD on the order book.<\/p>\n\n\n\n

Crypto exchanges all you to trade multiple trading pairs. For example, aside from being to trade BTC\/USD<\/strong>, you can also trade other cryptos\/fiat pairs like  ETH\/USD, BNB\/USD, ADA\/USD, or even crypto\/crypto pairs like ETH\/BTC or ADA\/ETH.<\/p>\n\n\n\n

Each trading pair has its own order book. So on a crypto exchange, there is not just one order book, but many<\/strong>!<\/p>\n\n\n\n

Anybody can place a pending order, also known as a \u201climit order<\/strong>\u201d on an order book.<\/p>\n\n\n\n

That order will remain on the order book until the person that placed the order either:<\/p>\n\n\n\n

    \n
  1. Cancels<\/strong>\u00a0the order or\u2026<\/li>\n\n\n\n
  2. Another person agrees to\u00a0take<\/strong>\u00a0the order.<\/li>\n<\/ol>\n\n\n\n

    For example, if you place a limit order to buy bitcoin (BTC) for 30,000<\/strong> USD, someone else on the exchange will need to agree to sell bitcoin BTC) at the same price of 30,000 USD.<\/p>\n\n\n\n

    Placing an order does not necessarily mean that another person will agree to take your order. If someone else on the exchange places a better order than the one you placed, then that order will be taken first.<\/p>\n\n\n\n

    Returning to the previous example, if someone else places a limit order to buy bitcoin (BTC) for 30,001<\/strong> USD, which is higher than your order price of 30,000<\/strong> USD, then that order will be taken first. Why would a seller accept your price when it can get a slightly higher price instead?<\/p>\n\n\n\n

    The requirement to take the best available bid or ask price is enforced by a crypto exchange so its customers don\u2019t accidentally take a worse price than the best one available.<\/p>\n\n\n\n

    How do I use an order book?<\/h2>\n\n\n\n

    When you place an order on the exchange, you have two options.<\/p>\n\n\n\n

      \n
    1. You can place a limit order that will \u201csit\u201d in the order book and\u00a0wait for someone else to take<\/strong>\u00a0eso.<\/li>\n\n\n\n
    2. You can immediately take<\/strong>\u00a0someone else\u2019s limit order that\u2019s already \u201csitting\u201d on the order book.<\/li>\n<\/ol>\n\n\n\n

      Here\u2019s an example of what an order book looks like:<\/p>\n\n\n\n

      \"Crypto<\/figure>\n\n\n\n

      The asks are shown in red<\/strong> and the bids are shown in green<\/strong>.<\/p>\n\n\n\n

      For each price level, you will see a \u201cMarket Size\u201d or \u201cCumulative Quantity\u201d. This is the quantity of the cryptocurrency that are willing to be bought or sold at that specific price.<\/p>\n\n\n\n

      You can think of the order book as representing oferta y demanda<\/strong>.<\/p>\n\n\n\n

      The asks are people offering their bitcoins (BTC) for sale on the exchange and providing supply<\/strong> to fulfill the demand<\/strong> from buyers.<\/p>\n\n\n\n

      \"Order<\/figure>\n\n\n\n

      This order book shows the available buy and sell orders for the BTC\/USD trading pair.<\/p>\n\n\n\n

        \n
      • En\u00a0buy side<\/strong>\u00a0(in\u00a0green<\/strong>) represents all open buy orders (\u201cbids\u201d) below the last traded price.<\/li>\n\n\n\n
      • En\u00a0sell side\u00a0<\/strong>(in\u00a0red<\/strong>\u00a0) represents all open sell orders (\u201casks\u201d) above the last traded price.<\/li>\n<\/ul>\n\n\n\n

        If you look closely, near the middle, you can see the \u201cbest bid\u201d and the \u201cbest ask\u201d.<\/p>\n\n\n\n

        The \u201cbest bid\u201d price, which is the highest price someone is willing to buy some bitcoin,  is 29968.79<\/strong><\/p>\n\n\n\n

        The buyer(s) who entered this order is basically saying, \u201cYo, I am bidding<\/strong> <\/em>on 0.0474 units of BTC in exchange for 29968.79 <\/strong>USD.\u201d<\/p>\n\n\n\n

        The \u201cbest ask\u201d price, which is the lowest price someone is willing to sell their bitcoin, is 29969.62<\/strong><\/p>\n\n\n\n

        The seller(s) who entered this order is basically saying, \u201cYo, I am asking<\/strong> <\/em>someone to buy 0.0276 units of BTC that I own for 29.969.62 <\/strong>USD.\u201d<\/p>\n\n\n\n

        En gap<\/em> between the highest buying price (\u201cbest bid\u201d) and the lowest selling price (\u201cbest ask\u201d) is called the \u201cdifundir<\/strong>\u201c.<\/p>\n\n\n\n

        The spread measures the difference between the highest buy order and the lowest sell order.<\/p>\n\n\n\n

        In this case, the spread is 0.81<\/strong> USD.<\/p>\n\n\n\n

        What if I want to buy?<\/h2>\n\n\n\n

        If you want to buy<\/strong> BTC\/USD, you can either:<\/p>\n\n\n\n

          \n
        • Place a buy limit order on the buy side (green text)<\/li>\n\n\n\n
        • Take the best ask on the sell side (red text)<\/li>\n<\/ul>\n\n\n\n

          Since the best ask price on the sell side is\u00a029.969.62\u00a0<\/strong>USD, you can instantly \u201ctake\u201d that price by placing a \u201cmarket order<\/strong>\u201c.And you become the proud new owner of 0.0276 bitcoin.\u00a0<\/p>\n\n\n\n

          Otherwise, you would need to place (or \u201c make\u201d) a buy \u201climit order<\/strong>\u201d specifying a \u201climit price<\/strong>\u201d that is less than or equal to 29968.79 <\/strong>USD on the buy side.<\/p>\n\n\n\n

          All these buy limit orders remain \u201copen\u201d and will just \u201csit\u201d in the order book until someone agrees to sell or \u201ctake\u201d at the limit price.<\/p>\n\n\n\n

          There is no guarantee someone else will ever agree to sell at the available \u201climit prices\u201d or \u201cbids\u201d so you don\u2019t know how long your order will \u201csit\u201d before it\u2019s ever taken.<\/p>\n\n\n\n

          For example, if you place a buy limit order for BTC?USD with a limit price of 1 USD, you might die of old age before you ever find someone willing to sell you bitcoin at that price\u2026unless the crypto market experiences the greatest crash ever.\u00a0<\/p>\n\n\n\n

          Assuming that doesn\u2019t happen, your \u201cbid\u201d will just \u201crest\u201d or \u201csit\u201d in the order book until you manually cancel the order.<\/p>\n\n\n\n

          What if I want to sell?<\/h2>\n\n\n\n

          If you already own some bitcoins and want to sell <\/strong>BTC\/USD, you can either:<\/p>\n\n\n\n

            \n
          • Place a sell limit order on the sell side (red text)<\/li>\n\n\n\n
          • Take the best bid on the buy side (green text)<\/li>\n<\/ul>\n\n\n\n

            Since the best bid price on the sell side is\u00a029968.79<\/strong>\u00a0<\/strong>USD, you can instantly \u201ctake\u201d that price by placing a \u201cmarket order<\/strong>\u201c.And say goodbye to 0.0474 of your bitcoin.\u00a0<\/p>\n\n\n\n

            Otherwise, you would need to place (or \u201c make\u201d) a sell \u201climit order<\/strong>\u201d specifying a \u201climit price<\/strong>\u201d that is more than or equal to 29.969.62 <\/strong> <\/strong>USD on the sell side.<\/p>\n\n\n\n

            Typically, a crypto exchange will charge a higher fee if you \u201ctake<\/strong>\u201d an order versus if you \u201cmake<\/strong>\u201d or place a limit order for others to \u201ctake\u201d.<\/p>\n\n\n\n

            This fee model used by crypto exchanges is known as the \u201cmaker-taker<\/strong>\u201d fee model and will be discussed in more detail in the next lesson.<\/p>","protected":false},"excerpt":{"rendered":"

            In the crypto market, most crypto traders and investors buy and sell cryptocurrencies on a centralized exchange (CEX). A key concept that you should understand before placing your first crypto trade on an exchange is the \u201corder book\u201d. An order book offers a real-time \u201cbehind the scenes\u201d view into the supply and demand of a particular cryptocurrency. In this […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,12],"tags":[],"class_list":["post-2977","post","type-post","status-publish","format-standard","hentry","category-beginners-guide-to-crypto-exchanges","category-learn-crypto"],"_links":{"self":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts\/2977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/comments?post=2977"}],"version-history":[{"count":1,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts\/2977\/revisions"}],"predecessor-version":[{"id":2978,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/posts\/2977\/revisions\/2978"}],"wp:attachment":[{"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/media?parent=2977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/categories?post=2977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apex-aiexperts.com\/es\/wp-json\/wp\/v2\/tags?post=2977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}