# Order-book and Tick system

Crescent DEX differentiates itself from a typical DEX by functioning as an order-book-based exchange, significantly enhancing the user experience in terms of adaptability and transparency.

In an order-book-based exchange, a "tick" refers to the minimum price movement that a particular asset can make. Each asset on the exchange is assigned a certain tick size, which is the smallest possible increment that the price can change by. For example, if the tick size for an asset is $0.01, the price can only move up or down in increments of $0.01.

The tick size is an important consideration for traders because it can affect the cost and liquidity of their trades. For instance, if the tick size is very small, it can be easier to enter and exit trades at precise price points, which can increase liquidity. On the other hand, if the tick size is too large, it can be difficult to enter and exit trades at specific price levels, and traders may have to accept less favorable prices in order to execute their trades.

This doesn't mean that blindly reducing the tick size is a good idea. While infinite computing power could theoretically manage innumerable ticks, it isn't efficient or necessary to accommodate all information within unrequired ticks. Exchange operators can adjust the tick size for different assets based on a variety of factors, including market volatility, trading volume, and the specific needs of traders on their platform. Ultimately, the tick size is a key aspect of the order-book model, helping to ensure that trades can be executed efficiently and accurately while maintaining a market and it can be adjusted by governance.

<figure><img src="/files/Ss55bPrEXJ79nCRTV4wQ" alt=""><figcaption><p>Orderbook and Tick system</p></figcaption></figure>


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