A Public Order Book is a transparent, real-time electronic ledger maintained by a centralized cryptocurrency exchange that openly displays all active buy (bid) and sell (ask) limit orders for a particular digital asset, providing a comprehensive and immediate view of market depth and available liquidity.
Mechanism
Architecturally, the public order book is powered by a high-speed matching engine that continuously aggregates and displays orders submitted by market participants. New orders are added, existing orders are modified or canceled, and executed trades are removed, ensuring the book accurately reflects the most current supply and demand dynamics. This critical market data is broadcast via low-latency data feeds to all interested parties.
Methodology
The strategic utility of the public order book lies in its inherent transparency, enabling traders to gauge real-time market sentiment, assess available liquidity, and identify potential price levels for order execution. While offering broad access, large orders placed directly on the public book can incur significant market impact, prompting institutional traders to employ smart order routing or dark pool alternatives for substantial transactions.
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