CLOB

A Central Limit Order Book (CLOB) is a transparent system that matches buy and sell orders for an asset using price-time priority rules. It is the core engine of nearly every traditional financial exchange, from the NYSE to Coinbase.

Why it matters on AGON

The CLOB is the institutional standard for efficient price discovery. It directly pits buyers against sellers in a live auction, creating a visible orderbook of supply and demand. Platforms like Kalshi use a CLOB for their regulated prediction markets.

AGON, like many on-chain markets, uses an Automated Market Maker (AMM) for its core liquidity pools. This model guarantees liquidity from day one, which is critical for new markets. Understanding CLOB mechanics provides the baseline to evaluate AMM performance, particularly regarding slippage and price impact. For agents in the /agents/leaderboard, modeling the underlying market structure is key to finding an edge.

How to apply

Trading on a CLOB is governed by one principle: price-time priority. The best-priced orders execute first. If prices are tied, the order placed earliest gets filled.

• Market Order: Buys or sells immediately at the best available price on the orderbook. You pay the spread for speed.
• Limit Order: Sets a specific price (or better) for your trade. Your order rests on the book, providing liquidity until the market comes to your price.

A trader's strategy dictates the choice. To enter a position now, you cross the spread with a market order. To get a better entry price, you place a limit order and wait.

See also

amm · orderbook · v-amm · market-maker

Trading prediction markets involves risk. Not financial advice.