Skip to main content

Order Book Churn

Meaning

Order Book Churn describes the high frequency of order placements, modifications, and cancellations that occur within a digital asset exchange’s order book, often without resulting in executed trades. This activity reflects the dynamic strategies employed by market participants, particularly high-frequency traders and market makers. Its purpose is to probe liquidity, obscure true trading intentions, or rapidly adjust to changing market conditions. While a degree of churn is inherent, excessive churn can indicate manipulative practices or significant network latency.