← Glossary
Order book
The exchange's list of waiting orders to buy and sell a share, sorted by price.
Every limit order that has not yet traded waits in the order book: buyers' orders on one side, from the highest price down, and sellers' orders on the other, from the lowest price up. The top of each side gives the bid and the ask.
A deep order book — many orders close to the price — means a share can be traded without moving its price much.