# What is an Order Book

In crypto trading, an order book is a real-time list of all the buy and sell orders for a specific trading pair on an exchange. It provides transparency into market activity and helps traders understand supply, demand, and price levels.

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### What the Order Book Shows

* Buy Orders (Bids)

  Orders from traders who want to purchase the asset at specific prices.
* Sell Orders (Asks)

  Orders from traders who want to sell the asset at specific prices.
* Order Size (Volume)

  The amount of the asset traders want to buy or sell at each price level.

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### How It Works

* The order book is constantly updated as new orders are placed, filled, or canceled.
* The highest bid (best price someone is willing to pay) and the lowest ask (best price someone is willing to sell at) define the current market price.
* The difference between the highest bid and the lowest ask is called the spread. Example: If the highest bid for ETH is $2,000 and the lowest ask is $2,005, the order book shows a spread of $5.


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