Module 1 · The Order Book
How Price Ticks
Makers, takers, and consuming the inside liquidity.
In this lesson you'll
- Review maker (limit) vs taker (market)
- See exactly how the inside bid/ask moves
- Connect liquidity consumption to price movement
Two order types drive the ladder. A limit order rests in the book and adds liquidity — that's the size you see (a maker, passive). A market order removes liquidity — it crosses the spread and fills immediately against resting limits (a taker, aggressive).
The mechanical heart of DOM reading is how the inside market moves as liquidity is consumed:
Key takeaways
- Limit order = maker (adds liquidity, the size you see); market order = taker (removes it).
- Price ticks up only when the best offer is fully consumed (or pulled).
- The inside bid/ask moves as resting liquidity is eaten.
- Watch both the size at the inside and the speed it's consumed.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: Eating offers pushes price UP, not down.
Why that's off: Consuming the inside offer necessarily moves the inside ask.
Why that's off: The spread re-forms at the new inside, not 'doubles permanently'.
Once the 800 at 4500.25 are fully eaten, that level has no offer left, so the inside ask becomes 4500.50 — price has ticked up. Price moves when a side's resting liquidity is consumed.
Why that's off: It's reversed — market = taker, limit = maker.
Why that's off: A market order removes liquidity, so it's a taker.
Why that's off: A resting limit adds liquidity, so it's a maker.
A market order crosses the spread and removes resting liquidity (taker). A resting limit order adds liquidity and waits (maker).
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.