Introduction

This article explains what an order book is and how it helps traders understand real‑time market activity. An order book displays active buy and sell orders for a specific asset, organized by price levels. It reflects liquidity, depth, and the interaction between buyers and sellers, helping traders make better decisions.

What an Order Book Shows

Buy Orders (Bids)

Buy orders show the prices and quantities that buyers are willing to pay. These prices are displayed in green.

Sell Orders (Asks)

Sell orders show the prices and quantities that sellers are willing to accept. These prices are displayed in red.

Price Levels and Size

Each price level lists how much of the asset traders want to buy or sell at that specific price.

Market Depth

The highest bid and lowest ask appear at the top of the book. Coinlocally displays cumulative liquidity on both sides to show how much volume exists before the price moves.

Additional notes

• The depth chart shows pending orders, but traders may cancel them at any time.
• Because of this, depth charts cannot reliably predict market direction.
• Always trade with caution and avoid relying solely on depth data.

Common Issues

• Assuming all displayed orders will execute.
• Misreading depth as a guaranteed trend indicator.
• Confusing cumulative liquidity with actual executed volume.

Feeling lost?

If reading the order book feels confusing or you want help understanding market depth, our support team is available 24/7 to guide you step by step.

Updated on: 01/18/2026