Order Book

The term order book refers to an electronic list of buy and sell orders for an asset

An order book is a ledger maintained by a decentralized exchange (DEX) that records the current open orders of its users. The order book keeps track of buyers and sellers, their desired prices, and the amount of cryptocurrency they are willing to trade. It is also used to measure the liquidity of the DEX. Market Order - When you place a Market Order you will be instantly matched with an order of the same price from the order book.

Example. Jon places a Buy Market Order. The current market value is 1.2 SOL and when Jon successfully places that order all available sell orders that match the price will be fulfilled and Jon will instantly receive his assets provided that there are enough being sold at that price.

Limit Order - When you place a Limit Order your order will go into the order book and when an opposite order is place for the same price it will be fulfilled.

Exmaple. Susie places a Sell Limit Order 10% higher than the current market price. Susie can now go about and live their life knowing that if the price dips down to their Sell Limit Order it will be immediately filled with an opposite Buy Order.