So what is order book on an exchange? Well, Order Book is a queue list of selling prices and purchase prices available on the market at that time.
If you go to the Indodax marketplace, click one of the crypto assets, then scroll down, then you will see a table of selling prices and buying prices that change every second. Well, this is what is called an order book.
Two parts in the order book
Sell market on the left
Buy market book order records the queue of crypto asset purchases along with the amount to be purchased and the price.
Buy market on the right
he market book sell order is a list of crypto asset assets sold, complete with quantities and prices
Well, you already know that with the limit method, you can buy bitcoin at a certain price. For example you have 1 million rupiah and want to buy bitcoin at a price of 100 million. Now, you just need to write the number 1 million in the total rupiah column, then the number 100 million as the limit price, and click buy bitcoin. After that, your order will not be executed immediately, but will be entered into the order book list.
No need to panic huh. Remember, Indodax is a marketplace that brings members who want to buy and sell bitcoin and other crypto assets. So, Indodax does not act as a seller or buyer.
The order you made earlier will enter the order book and wait for members who want to sell bitcoin at 100 million! If your order matches the price of the member who wants to sell bitcoin at the same price, then your order will match.
So, for example, if a member wants to sell Bitcoin worth 500 thousand rupiah at a selling price of 100 million, the selling order will be executed. Because there is already a purchase order worth 1 million at a price of 100 million recorded in the order book.
However, the order to buy Bitcoin worth 1 million at the price of 100 million is still pending because, of the 1 million that was only executed 500 thousand. So there are still 500 thousand left, and have to wait until there is another order to sell bitcoin at a price of 100 million.
If the order is fulfilled, you will get a notification that the order has been executed!
However, it’s different if you use the market / instant order method! For example, in the market selling orderbook there are those who want to sell 1 million bitcoin at the price of 101 million and 5 million bitcoin at the price of 102 million. With the market / instant method, you only need to fill in the amount of rupiah you want to use to buy bitcoin. After clicking buy bitcoin, your order will be executed instantly to the lowest selling price in the order book!
So, what exactly is the order book function?
One function of the Order Book is to help you see how many buy or sell orders the crypto asset market is. So that way, you can see how many demands that want to have bitcoin or who want to release bitcoin. Now you can also see if there are members who want to buy or sell crypto assets in large numbers. Usually, orders like this will be highlighted yellow in the order book.
At this point, surely you already know what is order book in a marketplace. If there is still something you don’t understand, you can submit a question in the comments column. If you think this video content is useful, don’t forget to like comment subscribe and share with your friends!