$BNB THE ORDER BOOK PRINCIPLE ONLY FEW TRADERS KNOW
*(VERY IMPORTANT)
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Have you ever wondered how crypto buying & selling really works on an exchange? Let me explain the vital role of the order book in this entire process.
Imagine the market as a human body with the order book as a beating heart, where the supply and demand meet. On every exchange platform, be it crypto or stocks, there is this order book, a dynamic list of buy & sell orders for a specific currency pair, such as BNB/USD or ETH/ USD.
So on one side we have the buy orders, where traders indicate how much they're willing to pay for a certain quantity of that crypto. On the other side we have the sell orders, where they specify the price at which they're willing to sell the crypto currency.
đȘ Now imagine you want to buy BNB. You check the order book and see that some people are willing to sell at a particular price, and others are willing to buy at another price. When the price at which you are willing to buy meets the price at which someone is willing to sell, a transaction occurs automatically. And congratulations you're the owner of that crypto.
This order book is constantly updated in real time, every time a new order is placed. It gives us an instant view of the market dynamics, allowing us to make informed decisions about our trades.
đ« Cautionary Measure
Beware that the order book can be manipulated. Some traders may place false orders to influence the market, a practice also known as "SPOOFING". It is illegal and widely practiced and poorly regulated in the crypto market.
Always remember you're in a market that resembles a forest, so forest laws apply.
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