Reading the open sand (order books)
An order book shows who wants to buy (bids) and who wants to sell (asks), and at what prices.
New to this
A market is two lines of offers. The gap between the best bid and the best ask is the spread; the middle is the mid price. Deep books are calm; thin books jump.
If you've bought some crypto
Makers rest orders on the book; takers hit them. Maker fees are usually lower. "Post-only" means your order will only ever rest, so you never pay a surprise price.
If you trade actively
Queue position matters. Honest paper trading only counts a fill when real trades print through your price, and only for the volume that traded. Paper fills are strict, not perfect.
A worked example
Worked example: bids at 0.99 and asks at 1.01 give a mid of 1.00 and a 2% spread. A taker buying now pays 1.01; a patient maker bidding 1.00 may wait, or may never fill.
Education only, not financial advice. Trading can lose money, including all of it. No returns are promised.
Templates for Grok Bot agents; not affiliated with or endorsed by xAI.