> For the complete documentation index, see [llms.txt](https://yubit.gitbook.io/yubit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yubit.gitbook.io/yubit/spot-trading/spot-faq/what-is-order-book-and-market-depth.md).

# What is Order Book & Market Depth?

When trading spot assets, two key tools help you understand real-time market conditions: the **order book** and **market depth**. Together, they provide insight into liquidity, supply and demand, and potential price movement.

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1. ### **Order Book**

     The **order book** is a live list of all active buy and sell orders that have not yet been executed.  It contains:

   * **Buy Orders (Bids):** Traders looking to purchase at a specific price
   * **Sell Orders (Asks):** Traders looking to sell at a specific price

     The order book updates continuously and reflects current market interest at each price level.  **In simple terms:** 👉 It shows *who wants to buy or sell, and at what price*.

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2. ### **Market Depth**

     **Market depth** represents the total amount of buy and sell orders available at each price level. It is often displayed in cumulative tables or depth charts.  Market depth helps traders evaluate liquidity:

   * Large buy orders → potential **support**
   * Large sell orders → potential **resistance**
   * More orders at a level → price becomes harder to move
   * Fewer orders → price becomes more volatile

     **In simple terms:** 👉 It shows *how much you can trade at different prices*.

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### **Summary**

| Feature      | Purpose                                          | What It Shows                               |
| ------------ | ------------------------------------------------ | ------------------------------------------- |
| Order Book   | Displays all active buy and sell orders          | Buy/Sell prices and available quantities    |
| Market Depth | Shows liquidity and potential support/resistance | Cumulative order volume across price levels |

Understanding the order book and market depth helps you evaluate liquidity, anticipate price movements, and choose better entry and exit points when trading.