Order Book and Trade Book: Meaning & Difference
5paisa Research Team
Last Updated: 07 Jul, 2025 02:24 PM IST

Content
- Order book: Meaning
- Trade Book: Meaning
- Difference between order book & trade book
- Facts in order book & trade book online trading
- Conclusion
A list of buy/sell orders for any securities or financial instrument is referred to as an order book. Either manual or electronic, this list is known as an e-list in the online trading community. The price & quantity of each order are entered into the order book each time it is placed. Additionally, each order is given a unique number so that it can be found later. The order book is updated in real time. Order statuses include "requested," "queued," "ordered," "executed," "part executed," "expired," "canceled," & "rejected."
An order is recorded in the trade book after it is performed. A trade number is given, & the trade book has a listing of the execution's status. Similar to an order book, the trade book is also utilized in F&O & stock trading.
The order book reflects every order that has been placed, but the trade book reflects the transactions that have actually been completed. This is the main distinction between the two books.
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Frequently Asked Questions
No, orders cannot be modified from the trade book; only from the order book.
One of the most notable distinctions between the order book & the trade book is that the former records all orders placed, whilst the latter records all completed transactions.
Companies need order & trade books for tracking market activity, ensuring compliance, & analyzing trading performance.
The order book displays supply & demand at different price points. While price drops may be the consequence of greater selling pressure, price rises are often the outcome of rising buying demand. It has an impact on market sentiment & price direction.
Links to execute securities & cash settlements for each completed order are likewise included in the trading book.
You can add closure or subsequent transactions from the trade book in addition to keeping track of all completed orders.
An order book reveals the status of an order, including cancellation, modification, pending, & even all completed instructions, whereas a trade book just provides a trader with information on completed orders.