A Central Limit Order Book (CLOB) is an electronic system that matches buy and sell orders for financial instruments based on price and time priority. It aggregates all outstanding limit orders in a transparent, centralized venue, allowing traders to see available liquidity at various price levels. CLOBs are the backbone of most modern exchanges, providing price discovery and ensuring fair, orderly markets across equities, futures, and crypto.
Example
“She analyzed the central limit order book to spot a cluster of sell orders above $150, identifying it as a likely resistance zone.”