5) Market Mechanics
Ever wondered how stock trades actually happen in real time? The order book is a transparent window showing all pending buy and sell orders in the market. If you can read the order book, you have an edge most beginners don't.
An order book is an electronic ledger displaying all pending buy orders (bids) and sell orders (asks) for a stock, complete with prices and lot quantities. It updates in real time whenever an order enters or leaves the queue.
Picture a digital menu board at a restaurant that keeps changing. On the left side, you see a list of people wanting to buy food and their offered prices. On the right, sellers with their asking prices. When a buyer agrees to a seller's price, the food changes hands instantly. The order book works exactly like that, but for stocks.
Say you want to buy BBCA shares. The order book shows 500 lots at a bid of Rp9,850, 300 lots at Rp9,825, and 200 lots offered at Rp9,875. This means many buyers are queuing at Rp9,850, but the cheapest seller wants Rp9,875. If you want the shares immediately, you pay Rp9,875. If you're patient, you can place a bid at Rp9,850 and wait.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Profit / Loss CalculatorDo all Indonesian stock brokers show the order book?
Yes, nearly all online brokers in Indonesia display the order book. It's usually on the stock detail page with bid (green) and ask (red) columns. Some premium brokers show deeper depth up to 10-20 price levels.
Why does the order book sometimes look thick on bids but the price still drops?
This happens because orders can be cancelled. Sometimes big players place large bids to create the illusion of support, then pull them before execution. This is called spoofing and is prohibited, but it still happens occasionally.
