Order Book Basics
A 1-minute lesson from the MarketPro academy, one of 16 in orders and execution.
An order book is a real-time list of outstanding buy and sell orders for a given stock, organized by price level. It shows the current depth of interest on both sides of the market at a given moment.
An order book is a real-time list of outstanding buy and sell orders for a given stock, organized by price level. It shows the current depth of interest on both sides of the market at a given moment.
What the Order Book Shows
- Bids: outstanding buy orders, listed from the highest price a buyer is willing to pay downward.
- Asks (or offers): outstanding sell orders, listed from the lowest price a seller is willing to accept upward.
- Size: the quantity of shares available at each listed price level.
The gap between the best available bid and the best available ask forms the bid-ask spread. When a new order matches an existing order in the book at an agreeable price, a trade occurs and both orders are removed or reduced.
Finish this lesson in the MarketPro app
2 more sections of Order Book Basics, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.
Scan with your phone camera to install MarketPro and open this lesson.
Free account, no card. The academy has no paywall inside the app.
Not investment advice. Past performance is not indicative of future results.
Lesson 9 of 16 in Orders and execution
Run the numbers while this is fresh
The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Position size calculator, Margin calculator, Leverage calculator.
The whole academy is free in the app
All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.
Not investment advice. Past performance is not indicative of future results.