Question 1

What is the order book?

Accepted Answer

The order book is the live list of resting buy and sell limit orders for an asset, sorted by price. Bids sit on one side, asks on the other, and it updates continuously as orders arrive, fill, or cancel.

Question 2

What does liquidity mean in trading?

Accepted Answer

Liquidity is how easily you can buy or sell without moving the price much. A liquid market has many active participants, tight spreads, and deep order books. A thin market has few orders, wide spreads, and bigger price jumps.

Question 3

Is the size shown in the order book guaranteed?

Accepted Answer

No. Resting orders can be cancelled or added at any instant, so visible depth is a snapshot, not a promise. Large orders sometimes appear and disappear before anyone trades against them.