Understanding the Order Book#

The order book on Moonopol is what makes trading smooth and transparent. It keeps track of all buy and sell offers for a market, helping traders see the best available prices and make informed decisions. Here’s a simple breakdown of how it works.

What Is an Order Book?#

An order book is a live list of all buy and sell orders placed by users. It shows:

• Buy Orders – Users who want to purchase shares and the prices they are willing to pay.
• Sell Orders – Users who want to sell shares and the prices they are asking for.

How Does It Work?#

• When you place an order, it gets added to the order book.
• If your order matches an existing one (for example, someone is selling at the price you’re willing to pay), the trade happens instantly.
• If there’s no immediate match, your order stays in the order book until someone accepts it or you cancel it.

Types of Orders in the Order Book#

• Market Orders – These orders are executed immediately at the best available price.
• Limit Orders – These orders wait in the order book until the price you set is met.

Why Is the Order Book Important?#

• Transparency – You can see all open buy and sell orders, making it easy to understand market trends.
• Fair Pricing – Prices are determined by real users, not by the platform.
• Liquidity – A well-populated order book means it’s easier to buy and sell shares at fair prices.

Final Thoughts#

The order book helps Moonopol run smoothly by ensuring that trades are executed fairly and efficiently. Whether you're placing a quick market order or setting a limit order for your preferred price, understanding the order book gives you more control over your trades!