An order book is an electronic record of an asset’s purchase and sell activity on a trading platform, like a cryptocurrency exchange. An order book typically displays a clean image of a certain asset by logging purchase and sell orders. A matching engine is used by platforms with electronic order books to automatically sort and complete buy and sell orders, whether completely or partially.
An order book contains several important details about an asset. It first features sections specifically for buyers and sellers. The bid and ask section follows. In this instance, “asks” denote sell requests and “bids” denote buy orders.