Order books are made up from the price and volume that buyers and sellers wish to trade their assets or cryptocurrencies for.
Order books are only made up of Limit Order types and not Market Orders (as these execute immediately, so don't get placed in the order book at all).
Orders to buy cryptocurrencies are placed on the BID side of the order book, where as orders to sell cryptocurrencies are entered into the ASK side of the order book.
Simply put, BIDs are prices people are willing to pay to fill their order and ASKs are the prices people are willing to sell for.
The price will be determined by the lowest order in the order book view, which is also the lowest price someone is willing to sell the asset being traded, in the ASKs order book.
So how do we use the ASK price when creating trades in 3Commas?
Example using Take Profit
- You buy 1 ETH at $100 and set Take Profit of +5%, at $105.
- After a while, ETH begins to increase, and the following occurs in the trades:
Example using Stop Loss
- You buy 1 ETH at $100 and set Stop Loss of -5%, at $95.
- After a while, ETH begins to drop, and the following occurs in the trades: