The order book in OKX’s spot trading reflects current market orders, with red indicating sell orders and green representing buy orders. The best bid (buy) and ask (sell) prices show optimal execution points, while depth reveals order concentration and market support levels—key for assessing market strength and trade strategy.
Decoding the Order Book: A Visual Guide
For beginners, the red-and-green order book interface can be overwhelming. Let’s break down each component:
Two Core Sections:
– Ask (Red): Open sell orders at specified prices
– Bid (Green): Open buy orders waiting to be filled
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Three Key Columns Explained (BTC/USDT Example):
| Column | Meaning | Color Code |
|---|---|---|
| Price | Order price level | Red=Ask, Green=Bid |
| Amount | Quantity available | Larger values indicate stronger depth |
| Cumulative (Optional) | Total volume beyond current price | Helps gauge market liquidity |
Best Bid/Ask: The Market Price Gatekeepers
- Best Ask (Sell 1): Lowest available selling price (your immediate buy cost)
- Best Bid (Buy 1): Highest available buying price (your instant sell value)
Market orders execute at these prices, while limit orders queue behind them.
Market Depth: The Hidden Battlefield
Depth = Order volume distribution near current price
- Strong Bid Depth: Heavy buy orders below price signal support
- Thick Ask Depth: Dense sell orders above indicate resistance
Real-World Example:
If BTC/USDT shows:
– 50 BTC buy orders between $29,900-$30,000 → Bullish support
– 80 BTC sell orders at $30,100-$30,200 → Strong overhead resistance
Depth Chart Analysis
The visual depth chart displays:
– Green curve (bids): Steepness shows buying urgency
– Red curve (asks): Slope indicates selling pressure
– Gaps between curves: Potential price volatility zones
Practical Trading Applications
- Order Placement Strategy
- Prioritize best bid/ask for faster execution
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Adjust limit orders based on depth concentration
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Market Sentiment Analysis
- Imbalanced depth → Potential trend shifts
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“Wall” orders → Psychological price barriers
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Large Order Management
- Check depth before market orders to avoid slippage
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Split big orders in thin markets
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Bot Detection
- Perfectly spaced orders often indicate algorithmic trading
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Common Beginner Mistakes
❌ Confusing open orders with executed trades
❌ Assuming all displayed orders will fill
❌ Ignoring depth when placing limit orders
❌ Overvaluing depth charts without volume confirmation
FAQ: Quick Answers to Crucial Questions
Q: Why does order book data change so frequently?
A: It’s live market activity—orders get filled, canceled, or added constantly.
Q: How far should I look beyond best bid/ask?
A: For day trading, focus on 1-2% price range; for swing trading, 3-5%.
Q: Can depth predict price movements?
A: It shows potential support/resistance but doesn’t guarantee future prices.
Q: Why do large orders sometimes disappear?
A: Traders may cancel or modify orders based on market conditions.
Q: How reliable are depth charts during high volatility?
A: Less reliable—fast markets often see rapid order book changes.
Q: Should I always place orders at best bid/ask?
A: Not necessarily—sometimes deeper orders get better prices if the market moves favorably.
Key Takeaways for Smart Trading
- Color Coding Matters: Red=Seller advantage, Green=Buyer control
- Depth Dictates Liquidity: Thicker order books mean smoother trades
- Price Priority Rules: Orders queue based on price-time hierarchy
- Visual Tools Help: Use depth charts to spot concentration areas
- Context is King: Combine order book data with other indicators
Mastering order book analysis transforms you from reactive trader to strategic market participant. Remember—the most successful traders don’t just see numbers; they read the story the market is telling through its orders.
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