Quotes and Executions — How Reading the Order Book Reduces Mistakes (Part 2)
Quotes and Executions — How Reading the Order Book Reduces Mistakes (Part 2) 3-Line Summary The order book isn’t “extra info”—it’s the live place where price is negotiated. Trades follow simple rules (usually price priority → time priority ), which explains why some orders don’t fill. Reading the order book is not about prediction; it’s about avoiding bad execution (chasing, panic selling, and costly market orders). Recommended Keywords order book explained, bid ask meaning, trade execution rules, price time priority, market order vs limit order, bid ask spread, liquidity and slippage, how orders get filled, stock trading basics, quotes and executions Table of Contents The Order Book Is a Negotiation Board, Not a Price Label Basic Components: Bid, Ask, Depth (Size) The Spread: The Place Money Leaks Quietly Execution Rules: Price Priority & Time Priority Why “Buy/Sell Pressure” Indicators Can Mislead Eight Common Order Book Patterns Typical Traps: Spoofing-Like Behavior, Dept...