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Trading the heatmap with DeepDom

Module 02 · The foundationsLesson 2 of 277 min🔒 Students only

The order book: bid, ask, spread

Everything starts with the order book: the list of every resting limit order, sorted by price. Two sides face each other at all times.

  • Bid: the resting buyers, offering to buy at a given price or lower. The best bid is the highest buying price.
  • Ask (or offer): the resting sellers, offering to sell at a given price or higher. The best ask is the lowest selling price.
  • Spread: the distance, in ticks, between the best bid and the best ask. Tight spread, liquid market; widening spread, thin liquidity or volatility.
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Also in this lesson
  • What the book tells you, and what it does not
  • The data you need

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