Hey, Hope you all are good and staying safe at home. Today I go through steemit cyptoacademy first time ever and go through all past lectures to. its really valuable . In week 7 I firstly go through the lecture of professor @yousafharoonkhan on the topic EXCHANGE ORDER BOOK & HOW TO PLACE DIFFERENT ORDERS.

So, here is my attempt to homework related to this topic after going through all the notes lectures and research.

^{This illustration is created by me on canva app}

Question no 1 :
What is meant by order book and how crypto order book differs from our local market. explain with examples.?

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Answer 1
Order book is detailed information book. Where we can check all previous and current prices of the particular pair of currency. And can go through the history of our buying and selling records. By this we can also analyse the market and guess what the position and go in future also. Order book also provide you the information about the Profit and Loss in our exchanges we have done. And confirm that order has been booked or not . If we placed any OCO or stop limit Ordr we can cancel that order from here. But there is a slight difference in local market order book and crypto market order book. In Crypto market order book we always deal with pairs of currencies. And in local order book we check out all the process first then we consider that thing which have lowest price among all of the products.

Example of local order book

If you have to purchase banana's and We see so many vendors out there selling banana's. Then we went to 4-5 vendors and note down all the prices Like vendor A - 15 rupees , Vendor B - 20 rupees , vendor C - 12 rupees, Vendor D - 18 rupees. this is how we listened to each and every price of same banana and purchased it from the Vendor C who is selling it for 12 rupees. This is local market order book.

^{This illustration is created by me on canva app}

Example of Crypto order book

When we talk about crypto order book it is deal between a pair like We are buying steem against ethereum. So we place a order to buy steem against ethereum we can give our ethereum to purchase steem insead of money. In crypto order book there are many indicattors like Stop-limit, OCO, LImit trading, Market trading which help us to make more profits in that pair.

Difference between Local market order book & Crypto order book.

Local Market order book	Crypto order book
It is rough manually order work	It is Digital platform who monetize our transactions.
In this if we once buy the product we cannot return that. Once it done its over.	We can do modification in this like increase limit or cancel the order
Physical work is required which is time consuming	Easy, fast & smart work
You have to manage loss and profit in this itself	In this it will manage automatically all the losses and profit as we want with the help of indicators.

This is the difference between both order books.

Question no 2 :
Explain how to find order book in any exchange through screenshot and also describe every step with text and also explain the words that are given below.?

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Answer 2
To find the order book in your particular exchange steps are mentioned below. I am showing you here find order book in my verified binance account with the help of screenshots. But firstly as asked by sir to show verified binance account is here.

Step 1

Login into your exchange. You can use web version or can download the app. Here i have downloaded app so I am logging in and interface will get in front. Then click on the Markets icon below.

Step 2

Then you will see next page and a option above there named as Spot. Click on that.

Step 3

Type the name of the pair you want to check out and select that pair. Here i am willing to see the orders of [STEEM/ETH].

Step 4

Then we will get a option of selecting order book down there of a particular pair we select. click on that option and here is the history of buyin and sell orders of that pair.

So, this is how we can see buy and sell order book of a pair we want.

Below, the definitions of the terms :-

PAIRS

Pair is exist in cryptocurrency as crypto to crypto and fait to crypto. Crypto to crypto means one cryptocurrency v/s another cryptocurrency we can buy cryptocurrency from another crypto accept this is called crypto to crypto pairing. For example [STEEM/ETH].There is also one fiat pairing which is between the crypto and the currency of that country. For example [ETH/USD].

SUPPORT AND RESISTANCE

Support in the market when all the investor's try to buy the assest because at that time that assist is at their lower level and showing the tendency to go up. So expected cause of this downtrend is attained by a support line. and in order to take advantage of this movement all investors start investing in that assest and that is why price of that assest start rising up.
Resistance in the market is when the assest is at their highest peak point and then trend to go downwards so the investor took the advantage of this moment and sell out their assests and make the profit the pause of this uptrend it is marked by the resistance line. And that a service starts going down.

LIMIT ORDERS

Limit order is a order in which we can place buy or selling of a assest in our thinking price like if a assest is of $20 and we want to buy that assest at $17 so we can set the amount of that fair at $17 if price goes to $17.00 then automatically buy that assessed at that time same we can do in selling if we want to sell the assessed in $22 we can set the selling amount to $22 and the if assest price goes to $22 automatically sell our assest.

MARKET ORDERS

Market order means if we want to buy some assest we have to buy this that assest in that price of market what is the price is going on we have to buy it on their price and at the time of selling we have to do the same what is the price of that assest at the time of selling we have to sell that on the market price. The huge difference between market and limit order is this we cannot put our prices in market orders as we can do in limit orders.

Question no 3 :
Explain the important future of order book with the help of screenshot. In the meantime, a screenshot of your exchange account verified profile should appear

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Answer 3

Features of order book

There are many pictures available in order book like buying order, selling order, average, total, price, sum. When trades so we need to focus on both of Buying & selling orders the most so firstly will discuss the buying and selling orders. But before starting as asked by professor to show verified account here it is.

BUY ORDER BOOK

Buy order book is something where the price of buying the particular pair of pair are listed up in order of fluctuation of that particular pair of currency so a person can come and check out all the buying history of a particular pair and can buy the pair with the following details mentioned below with the screenshots how to buy a particular asset from buy order book.

In buy order Book we found buying records. Then when we click on by we directly to the another page which consists of profit and loss percent of a particular where the current price of that pair the amount we want to buy ethereum against the that currency and a buying button. We can simply enter the amount of ethereum we want against the currency and place order then it will take few minutes to complete your order and buy ethereum against that currency. At given market price.

SELL ORDER BOOK

Sell order book is something where the price of selling the particular pair of pair are listed up in order of fluctuation of that particular pair of currency so a person can come and check out all the selling history of a particular pair and can sell the pair at good rate with the following details mentioned below with the screenshots how to sell a particular asset from sell order book.

In sell order Book we found selling records. Then when we click on by we directly to the another page which consists of profit and loss percent of a particular where the current price of that pair the amount we want to sell ethereum from present ethereum in our wallet against the that currency and a selling button. We can simply enter the amount of ethereum we want to sell against the currency and place order then it will take few minutes to complete your order and selling ethereum against that currency. At given market price.

Then after these two there are also features like Average sum , total sum. Let me take you to my laptop screen to show this in web version this topic will be clear at most.

So, these are some very important features of order book through which we can understand the trend of the market and invest or takeout profit from market.

Question no 4 :
How to place Buy and Sell orders in Stop-limit trade and OCO ,? explain through screenshots with verified exchange account. you can use any verified exchange account.?

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Answer 4

Stop limit

Stop limit is that when the market price is going on but we want to buy a coin like BNB having rate of 316 we know that price could come down so we will place a stop limit 310 or what we want and no. of coins when the price reached 310 it stop the price limit and purchase 20 BNB coin for us. Another advantage of this is when we want to sell we can use this feature at that time also If we are expecting higher price than that of current price we can enter the stop limit for example we can say that BNB should be of 316 and we put limit of 320 to sell when price reach to 320 it stop the limit and sell the no. of coins we entered. So, we can have more profits and advantages of this feature.

Lets place a buying order in stop limit first. Steps are mentioned below.

Step 1

Login into the binance account on its app and Click on the market icon down there.

Step 2

Select the currency you want to buy under stop limit.

Step 3

Go to the Order book panel of that currency and click on the buy button down below.

Step 4

Select stop limit option from the drop down.

Step 5

Now, enter amount on which you want to stop less then that of current market price and we want to buy that coin. in next box there is current price of the coin. No. of coins you want to buy and click on by button.

Now lets try to sell the the BNB coin by using stop limit. I will stop the limit on some cetain price to stop my loss and sell the coin. Steps are same as above but now we will go on sell section insead of buy section.

OCO(One cancels the other)

OCO means we can place two different type of order at the same time with different limits then according to the situation onlu one order execute by cancelling the another order. Example if Bitcoin is of price 30,000 current price is this and we dont know market will go up or fell down. So in this case we can put 2 different orders like if the price of bitcoin goes up till 33,000 and we set limit on 32,500 software should automatically sell our selected no. of bitcoins and make huge profit for us but in case we doubt that price can also fall down then we will place another limit of 29,500 so when price start falling down it stops and sell my bitcoins this will give me less profit but prevent me from loss. But only one order will get executed so it named as One cancels the other. And same is for buying in OCO.

Lets place a Selling order in OCO.

All steps are same till order book and selecting OCO from drop down as above. Then we have to enter the price , stop limit, limit and Amount of Asset you want to sell say 100% of you are having. Click on sell Order will take place in order list.

We can also cancel any of this order.

Similarly, We can place OCO buying orders.

This is stop order limit & OCO and process to put stop limit and OCO on buying and selling of any Pair in any exchange.

Question no 5 :
How order book help in trading to gain profit and protect from loss? Share technical view point, that help to explore the answer ?

Answer 5
Order book is consist of so many features that can help us in many ways. It consist of past records of pairs from which we can understand more about of that pair that when it can attain resistance line and when it can attain support line. So according to this we can make our trades which can provide us more profits.

We can also make profit maximum profits by using good tools provided by the order book like Market order, Limit order , Stop limit order, OCO whic protect you from more loss. If you have a perfect knowledge about the bull and bear you cann buy or sell a particular pair by using market order. If you want to buy or sell a pair at particular price predicted by you to have more advantage and profit and less loss you can use Limit order so whenever your predicted price will come it automatically buy or sell the pair which can save your time of seeing the price again and again and also you took advantage of the price to make profit. If you have confusion related to any of pair that the price will go up or come down then you can put you can put 2 orders of your desire to make large profit and bear less loss with the help of OCO.

So, in these ways order book indicators help you to attain good profit and less loss.

Conclusion

Order book is highly important feature of any Exchange through which we can manage alot of things like when to buy when to sell. If we use tools like Market, OCO, Stop limit and limit trading. We can easily trade on this and make profit and stop or decrease the loss. We can also consume our time. Analysis these tools are really important for a good trade.

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NOTE:- ALL SCREENSHOTS ARE TAKEN FROM MY VERIFIED BINANCE ACCOUNT APP.

THANK YOU