Order book

Order book

Book that provides an overview of the current order situation for a specific security.

An order book is used to pool, compare and match the volumes and prices of buy and sell orders for a particular security. Thus, in auction-based trading, the order book supports the price determination procedure.

Market orders, which are to be executed at the best available price, are given first priority in the order book. The remaining orders are sorted and listed, with the bid prices in ascending order and the ask prices in descending order.

Nowadays, most order books are computer-based. Some order books are closed, which means that only certain groups of persons have access to them, while others, such as the electronic order book of the Xetra® trading system, are open to all trading participants.