The Order Book or Depth of Market (DOM) is a measure of the supply and demand for liquid and tradable assets. It's derived from the number of open Bid and Ask orders for a particular asset, exchange order or futures contract. The more orders there are, the deeper or more liquid the market is. The Order Book represents a list of limit orders for a tradable asset.
Spread and Order Book
A transaction on the market occurs only when the value satisfies both sellers and buyers. However, there are no negotiations between the parties on financial platforms; all transactions are concluded with the help of market and Bid/Ask orders.
How the Order Book works?
The Depth of Market, or Order Book, displays the current Ask and Bid market prices. As soon as an order for the required amount of an asset with the Ask price corresponds to a similar Bid price, a transaction takes place.
In StormGain's Order Book, users can view current market orders, Ask as a buy price and Bid as a sell price. Currently, liquidity in the Order Book is provided by institutional market makers. However, in future updates, our clients could also see their liquidity.
Transactions are automatic for limit orders. For example, if a trader wants to fix losses and sets a sell limit order (Stop Loss) at a certain price level, the trader's order is automatically executed if the price reaches that level.