Order Book [Limit Order Book]

The Order Book or Limit Order Book is the list of limit orders that have been submitted to the exchange to be executed at the various price levels.

The Order Book can be represented as volume bars in a DOM or as bands of color in the heat map in BookFlow.

Traders sometimes use the Order Book to help them make trading decisions by observing where the other traders add or remove liquidity, and noting how the market interacts with the liquidity when it reaches those price levels.

See also Queue, Spoofing, DOM – Depth of Market.