Which statements are true about on-book trading?

On-book trading refers to transactions that occur within the confines of an exchange's order book. The key aspect of on-book trading is the anonymity it provides, which means that while the orders are listed in a centralized location, the identities of the buyers and sellers involved in the transactions are not disclosed. This anonymity fosters a more competitive trading environment, as participants can trade without revealing their trading intentions to others in the market.

While the order book itself may be public in the sense that it displays available orders and their corresponding prices, this does not detract from the fact that the identities behind those orders remain confidential. This characteristic is crucial for many traders who seek to protect their strategies and positions.

Other capabilities of on-book trading include the variety of order types that can be placed, such as limit orders and stop orders. However, it is not accurate to say that all orders are market orders or that there are no restrictions on order types, as traders often have significant flexibility in how they can engage with the market, depending on the exchange's rules and the trading strategy they employ.