It's a fresh new day I am glad to learn from professor @yousafharoonkhan on the Exchange order book and its Use and How to place different orders, and I was able to get this weekly homework task done and now I submit it.

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1. What is meant by order book and how crypto order book differs from our local market. explain with examples (answer must be written in own words, copy-paste or from other source copy will be not accepted)

The order book, we can say that is the order of orders that are still open for any asset of orders (cryptocurrency or coins) by its price. It will be listed in the order book until it is matched with another order by a buyer or seller. or until it is cancelled by order placers.
The order book is totally different, in the order book records of trader or traded pairs are kept. For this example, we are using BTC/ETH, if any trader buys ETH in exchange for ETH, this record or data will be maintained on the order book under BTC/ETH buy orders. Similarly, let's say another trader buys BTC from ETH. This record will be maintained on the order book and if a trader sells BTC and gets ETH, the record will be maintained in sell orders in the order book.

There is a lot of fluctuation in cryptocurrencies price volatility is very fast. There is so much price fluctuation in the order book's open orders, but in the local markets, there are no price fluctuations. for the example we will use BTC the current is 39200$ It can change to 37500$ or 3500$ very quickly like in an hour later, day, minutes. the price increase 11 or 35% price drop could happen in an hour later, day, minutes. If the price of vegetables or any product in the local market is 2 or 3 $, then it is probably 2 or 3 $ in an hour later, day, minutes.

The order book is a financial record book that gives the price of selling or buying an asset. Order book consists of both the bidding of the price buying price and selling price of of the market which stores the data of the transactions of buying price and selling price of the market that has been placed but not yet taken place and record other transactions that have taken place in the market

There is no technical analysis that can be done in the local markets like price predictions, uptrend, downtrend etc. Because local market prices are charged by increase or decrease in supply/demand in national or international or any change made by government policies or price.

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2. Explain how to find and order book in any exchange through a screenshot and also describe every step with text and also explain the words that are given below. (Answer must be written in own words)
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First I will list out the step and add a screenshot with it

• First choose exchanges platform I am using BINANCE app open BINANCE app and select market

• After selecting market on top we see search option click it
  
• Now search the Cryptocurrencies pairs you want I am choosing ETH/BTC and click your pairs which are showing under the search option

• In the down left we see order book and Green is buying and Red is sell

• pair

The pair means cryptocurrency paired together on an exchange platform that can be traded for each other. For Example, ETH/ BTC. are two cryptocurrencies that we can sell or buy. To furthermore I will show with an example, we can buy BTC from ETH or ETH from BTC, we can sell ETH for BTC or BTC for ETH.So trading pair can be either crypto to crypto or cryptocurrency to currency lily BTC/USD OR EUR/BTC.

If I place a buy order for ETH/BTC, it means tag I am buying ETH with my BTC cryptocurrency and if I place a sell order for the pair ETH/BTC, it means that I am selling my BTC (Bitcoin) cryptocurrency for ETH.

• Support and Resistance

Support:- in cryptocurrency trading or any trading Support is the level where the price finds it difficult to fall below until the end it fails to do so and the price bounces back up. For example, we see the below image

Same as Support Resistance in cryptocurrency trading or any trading is the level where the market price finds it very hard to break through or rise above it until it fails to and is pushed back down as we see the above image.

In the market, Support is usually noticed in a downtrend market and that line is the support line and the price of the Cryptocurrencies go uptrend again which could be as a result of traders activities for buying.

In the market Resistance is the line at which the price of a cryptocurrency goes down and this has the value of the Cryptocurrencies reduced, Resistance is often noticed in a bullish or uptrend of the market or cryptocurrency when the price of the Cryptocurrencies is going uptrend at this point, it experiences trend reversal price can break the previous high price and that makes it goes downtrend, that point is called as Resistance.

For example, BTC IS going down, somewhere 3850$USDT price in the market, BTC was able to pull back multiple times from the price point of 3850$, then it acted as a support level or support line because it marks level where downtrend of BTC and price started rising. So buy order can be placed, if we look at the Uptrend market of a BTC, it came to halt multiple times around 45000$ USDT, forming a resistance level for the BTC. So that is a sell signal.

• Limit Order

Limit orders are orders that are entered in the order book at specific prices as we can see in the above image. The user or trader or we can set limit order in the buy or sell zone. To set a limit order in the buy zone For example for ETH / BTC pair cryptocurrency; You must have a sufficient amount of BTC in your account. To set limit orders in the selling area, you must have enough BTC in your account.
When both contents are reached the order will be filled I will simplify by giving an example,
I want to buy ETH at the price of 0.0678BTC but the market price is 0.076BTC use limit order I place an order I will buy ETH at the price of 0.0678BTC when the market price reaches our price order will be filled and if I want to sell ETH it the price of 0.096BTC but the market price is 0.086BTC use limit order I place an order I will sell ETH at the price of 0.096BTC and this applies for both buy and sell in the limit order.

And it as features like percentage and total as we can see in the above image their percentage like 25-50-100 it means that if we click the percentage that is the amount of our asset will be placed in the order total it shows the total amount when we will get our order is filled.

We can use a limit order when we are not in hurry and we know that the market will reach our predicted price.

• Market Order

Market orders are orders that are entered in the order book it means that an order placed by a trader or us to buy or sell a cryptocurrency at the current live market price if we place an order to buy or sell a cryptocurrency at the live market price and the makes order is to be triggered at the current price which completes the order immediately it was placed in the order. To understand briefly I will give one example
If I want to buy ETH immediately and the current live market price is 0.076BTC and if I enter the amount of ETH and click by the order will be completed instantly like if I need a hundred ETH I will get 100 it immediately.

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3. Explain the important future of the order book with the help of a screenshot. In the meantime, a screenshot of your exchange account verified profile should appear (Answer must be written in own words)
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As requested by professor @yousafharoonkhan, I have shared my verified account on the Binance exchange platform before going into the details of the features of the order book.

Then click on "Market". Then click "spot, future, marching". And In the search box enter the Cryptocurrencies name for example '' ETH ''. For the pair. Like ETH / BTC. When we click on the pairs, we will be logged into the order book of that pairs.

The order book is fundamental for trading or buying cryptocurrency or selling it there are numbers of futures in the order book,

In the order book, we can see a bit and as it means to buy/sell
It shows the number of buyers and sellers and their place buying price and selling price and amount of ethereum they want for example you can see in the above image we can see the ethereum price and quantity in the order book.

The crypto order book is constantly changing In nature. It means that the above orders are open and they are getting executed continuously. So if we check the order book of the same pair after some time, we won't find the same orders as shown above. A new order will be opened by seller and buyer this will be fluctuating constantly.

In the right side corner we can see an option called Decimals A trader can customize the decimals of the price of a cryptocurrency in the trading pair. The decimals are up to 7 zeros and can be set to the trader's preference as shown in the below image

Limit order I will explain you with an example Example if we want to buy ETH from BTC enter the amount of ethereum needed and the price in BTC we need to buy as shown in the below image I have entered I need 100 ethereum at the price of 0.0704 BTC so so it will cost me 7 BTC now click on bye our order will be placed after placing order will show in open order section when our price is needed our order will be filled as I mentioned in name another person order limit as options like percentage this will help us to put order like if you have 100 BTC and we just need to spend 25BTC we just need to click the percentage 25%. This is applicable for both buy and sell in the cell it is will be reversed said we will sell ethereum to get bitcoin.

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4. How to place Buy and Sell orders in Stop-limit trade and OCO,? explain through screenshots with a verified exchange account. you can use any verified exchange account. (Answer must be written in own words)
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• BUY

1. Now I place Stop-limit trade buy order (ETH/BTC)

2. Using the ETH/BTC market on Binance spot trading.

3. Selected the stop-limit trade from the spot trading platform for that click limit it shows multiple options select stop limit as shown in the below image.

1. Inputted the stop-limit price to be 0.07 BTC and limit order price to be 0.6 BTC. Selected 100% of BTC and it will show total BTC need pay.

1. click buy ETH

2. when the price of ETH drops to below 0.07 BTC, the order to buy 100ETH at the price of 0.068 BTC would be triggered and placed in open order.

3. Lost it will show you an indicator about when will be the price will be triggered and order will be placed click confirm and other order will be placed on stop limit.

• SEll

1. Now I place Stop-limit trade sell order (ETH/BTC)

2.Using the ETH/BTC market on Binance spot trading.

1. Inputted the stop-limit price to be 0.07 BTC and limit order price to be 0.0.076BTC. Selected 100% of ETH and it will show the total BTC we will get from selling ETH

1. click SELL ETH

2. when the price of ETH drops to below 0.07 BTC, the order to SELL 100ETH at the price of 0.076 BTC would be triggered and placed in open order.

3. Lost it will show you an indicator about when will be the price will be triggered and order will be placed click confirm and other order will be placed on stop limit.

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Basically, stop-limit order is a combination of stop loss and limit order in one place stop-limit order is used to prevent loss and take profit also, for example, we can use stop loss to buy a kind which is going to lose is the current price, for example, $1 to $.08 before the price drop same for selling we can put stop loss to prevent losses before the market drops or to gain profit by not missing out an uptrend to sell cryptocurrency.

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How to place OCO trade buy order ETH/BTC

• BUY

1. As we selected the option stop-limit we can also see the OCO option select the option.

1. Inputted the limit price to be 0.07BTC. Stop-limit order to be 0.074BTC and the limit price for the stop-limit order to be 0.076 BTC. Selected 100% it will show you the amount we need to pay in BTC as shown in the below image

1. click by ETH

2. when the price drops to 0.07 BTC or when the price rises to 0.074 BTC.

The limit price is 0.07BTC and the stop-limit price is 0.074 BTC and its limit price to be 0.076BTC

if the price of ETHEREUM drops to 0.07 BTC and the buy order would be fulfilled while it cancels the stop-limit order and if the price didn't go down but rather rise to 0.074 BTC then the order is likely to be fulfilled at the stop limits limit price of 0.076 BTC while it cancels the limit price order at 0.07 BTC.

• *SELL
  1.Now I am selling ETH select sell option

2.Inputted the limit price to be 0.069BTC. Stop-limit order to be 0.065BTC and the limit price for the stop-limit order to be 0.062 BTC. Selected 100% it will show you the amount bitcoin we will get from selling ETHEREUM.

3 click sell

1. have planning to sell ETHEREUM for 0.069 BTC expecting it to rise to that level to 0.069 or sell at the price of 0.065BTC when the price ETH drops instead for some reason.

That time my limit price is set to 0.069BTC while the stop-limit price is set to 0.065BTC having its limit price to be 0.062 BTC.

if the price of ETH rises to 0.69BTC my ETH cryptocurrency could be sold and cancel in the order at the price of 0.062BTC if the price drops instead and hit the stop-limit 0.065BTC then the order could be fulfilled at the price of 0.062BTC and cancel out the other limit price.

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5. How order book help in trading to gain profit and protect from loss? share a technical viewpoint, that helps to explore the answer (answer should be written in own words that show your experience and understanding)
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Through this homey, we have seen different features of order book as a market order, limit order, stop-limit order, oco order, etc. All of these features help a trader to gain profit and cut off the losses well lost in trading.

Use Limit order option we can save time and get more profit any time. For the example, the ETHEREUM price is 0.0704BTC, but I want to sell the ETH at the price of 0.075BtC we have to wait for a lot of time for the price to reach 0.075BTC when the price reach for some reason we can't able to look at the market we can miss the opportunity to sell using limit order we can place order before the price is reached. If there was no such option as a limit order and your time was limited by looking the marker 24 into 7, or are would have to sell ETH at the lower price. In such incidents, we would have made very little profit by sell at low prices.

Stop limit order using stop-limit order we can significantly less our losses in the market for example a few days ago the bitcoin and all the other coin crashes down if we use a stop-limit order we could have sold in the middle of the crash and cut off our loss so using stop-limit order we can save our losses.

OCO order option helps the traders in trading perform the trade in a volatile market by clubbing two types of orders option and together to gain some profit and minimise the loss in a market crash

Resistance and support also play in the main road to gain profit and minimise losses using support and resistance we can see the market trends if resistance is breaking we can see the prices going up if the support is broken the price will go down using this we can identify the market trend so that we will cut off for loss and gain it. And this is only possibilities before we use resistance and support we need to analyse the market trolley.

Conclusion

order book in a cryptocurrency market is like a heart to exchange platform without it will not function there are so many uses we need to know more and we will get more information using this order book we can gain profit and minimise our loss

Thank you for a wonderful lesson professor @yousafharoonkhan

Thank you for all of you reading my post till here