🎯 WHY DO IDENTICAL ORDERS FOLLOW ONE AFTER THE OTHER IN THE ORDER BOOK??? 🤖📊
If you closely follow the order book on Binance or another crypto exchange, you've probably noticed an interesting feature: buy and sell orders often come in groups or "blocks". Why does this happen? Is it a coincidence or a pattern? Let's figure it out!
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🚀 What is an order book?
An order book is a table with current orders to buy and sell an asset.
🔴 Red block: sell orders (ask).
🟢 Green block: buy orders (bid).
Traders place orders at a specific price and volume. When the buyer and seller prices match, the deal is executed.
But why are orders grouped? 🤔
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🤖 1. Algorithmic trading and trading bots
Today, more than 70% of the volume on exchanges comes from trading bots and algorithmic strategies.
How does it work?
Bots automatically place buy and sell orders based on specified parameters.
For example, if the price of an asset reaches a certain level, the bot will immediately send a series of orders with a small step (for example, 0.01 USDT).
