Central Limit Order Book (CLOB)

A Central Limit Order Book (CLOB) is a digital marketplace where buy and sell orders for financial assets, like stocks or cryptocurrencies, are organized and matched automatically. Buyers submit bids indicating the price they’re willing to pay, while sellers submit asks specifying their asking price. The CLOB sorts these orders, displaying the best available prices, and facilitates transactions when compatible bids and asks meet. This system ensures transparency, efficiency, and continuous pricing discovery, allowing traders to see real-time market depth and execute trades quickly without needing a middleman.