Reviewed September 10, 2026
Read an order book in four passes: confirm the pair and timestamp, measure spread, inspect depth for a defined order size, then compare exchanges. Treat displayed imbalance as temporary evidence—not intent or a forecast.
At a glance
- Best bid is the highest visible buy price; best ask is the lowest visible sell price.
- Spread is best ask minus best bid and represents one form of quoted friction.
- Depth shows quantity at successive prices; it only becomes meaningful for a stated order size.
- Bid/ask imbalance summarizes displayed quantity in the sampled levels and can change immediately.
Step-by-step walkthrough
- Choose a supported asset in Bid / Ask Analysis and confirm the pair used by each exchange.
- Check timestamps and unavailable-exchange messages before comparing results.
- Record best bid, best ask, spread, and top-ten quantity on each side.
- Choose a hypothetical order size and identify how many levels it would consume.
- Compare exchanges, then document fees, latency, and missing depth that the snapshot does not include.
Illustrative $500 market buy
A narrow best quote can still lead to a worse average fill when depth is thin.
| Signal | What it can mean | Important caveat |
|---|---|---|
| Best ask: $100 | The first visible unit is offered at $100. | Only two units are available at this price. |
| Next ask: $101 | Additional size must pay a higher price. | The book may change before execution. |
| Average fill: $100.60 | The effective price reflects consumed depth. | Fees and latency remain excluded. |
Common mistakes and edge cases
- Treating the last price as the executable price for every order size.
- Comparing quantity ratios without checking pair units and asset prices.
- Reading one snapshot as proof of buyer or seller intent.
- Ignoring unavailable exchanges, timestamps, hidden liquidity, fees, and cancellations.
Reusable checklist
Checklist selections are temporary and are not transmitted or treated as a safety score.