📘 Thread 13: What is the order book in Binance and how to read it? 📊📕

If you feel overwhelmed by that screen full of red and green numbers when you go to trade on Binance… don’t worry.

Today I’ll explain what the order book is and how to use it to your advantage.

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1️⃣ What is the order book?

It is a real-time list of all the pending buy and sell orders for a trading pair.

In Binance, you see it right next to the chart.

🔴 Sell Orders (ask)

🟢 Buy Orders (bid)

2️⃣ What do the colors mean?

🔴 Ask = People who want to sell.

They list their coins at a price X and wait for someone to buy.

🟢 Bid = People who want to buy.

They offer a price Y hoping someone will sell to them.

3️⃣ What columns are there?

Normally you will see 3 columns:

1. Price (in USDT, BTC, etc.)

2. Quantity (of the coin, for example ETH)

3. Total (value in the base currency)

This tells you: “at price X there is someone who wants to buy/sell Y amount”.

4️⃣ How is this used?

The order book allows you to see the “battle” between buyers and sellers.

If there are many strong buy orders → possible support

If there are many large sell orders → possible resistance

👁️ You can anticipate price movements.

5️⃣ Key piece of information:

💡 The line where the reds and greens cross is the current market price.

It is the point where the last buyer found a seller at the same price.

That is where market orders are executed.

6️⃣ Why does it matter?

✅ You can see how much real demand a token has

✅ You detect areas where the price might bounce or halt

✅ You better understand how the market moves

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The order book is like watching the live auction of the crypto market.

Do not ignore it. It’s a powerful tool for any beginner!

Do you want me to talk about how to use volume and market depth tomorrow?

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