In Binance (and in general in any financial market), demand and supply refer to the behavior of buyers and sellers in the market. Here I explain each term:

Demand (Buy Orders):

• Represents the buy orders that users place in the market.

• Buyers are willing to pay a specific price for an asset (such as Bitcoin, Ethereum, etc.).

• These orders appear in the order book as lower prices than the sell orders, as buyers seek to pay as little as possible.

• Example: If you place an order to buy Bitcoin at $36,000, you would be adding to the demand.

Supply (Sell Orders):

• Represents the sell orders that users place in the market.

• Sellers offer their assets at a specific price.

• These orders are usually at higher prices in the order book, as sellers want to obtain the highest possible profit.

• Example: If you have Bitcoin and you want to sell it for $37,000, your order will be part of the supply.

Demand-Supply Relationship in Binance:

• The market price (current price) is determined at the point where demand and supply meet.

• If there is more demand (many buyers willing to pay more), the price tends to rise.

• If there is more supply (many sellers wanting to sell cheaper), the price tends to fall.

In the Binance order book, you will see something like this:

• Green columns (Bid): Show the buy orders (demand).

• Red columns (Ask): Show the sell orders (supply).