Definition
The live list of buy and sell orders waiting at each price for a market. Often called depth of market (DOM).
The story
Below the current price sit buy orders (bids); above it sit sell orders (asks), each with a size. A big stack of orders at one price can slow a move there, but orders can be pulled at any moment, so the book shows intentions, not commitments.
Why markets watch it
Some futures day traders watch the order book to see where buyers and sellers are lined up.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms