I hope you all are fine and having a great time in your respected lives. It's an honor to be here at Steemitcryptoacademy again.

Yesterday, I learned about exchange order book and its Use and how to place different orders by the post of our respected professor @yousafharoonkhan and here is my homework task in this regard. So let's get started without wasting much time.

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QUESTION NO 1:

What is meant by order book and how crypto order book differs from our local market. explain with examples.

Order Book:

An order book in cryptocurrency contains the buying and selling order of a particular coin or asset. In cryptocurrency if we make an order to buy a particular asset or a coin is known as bid and if we make an order to sell a particular coin or asset is known as ask.

If we look at the order book in cryptocurrency we get to know that the order book in cryptocurrency works in pairs which means that every coin has its pair by which that particular coin can be easily traded to the pair with which you want to trade. For example: I bought a coin namely ghst in exchange for ethereum or I want to buy btc in exchange of crv coin so all the trade will be recorded and retained in the buying order. Similarly if I want to sell ghst for ethereum or btc for crv the trade will get done and it will be recorded and retained in the selling order.

Lets have a look at some real world example to understand it easily, suppose you are in the market and you have to buy some groceries for your home. You also had an order book for what you have to buy and in which prices you want to buy depending on the budget you have. Suppose you have to buy some flour, meat, fruit, vegetables and some other things from the market and obviously you want to buy all these things at your own price but the seller has his own prices. When these prices don't agree with what we want to pay so we bargain with the seller to reduce the price or we look for another seller to get that at our own price. But sometimes we have to pay more then what we are willing to pay depending on our need.

How crypto order book differs with local market:

Cryto order book works a bit different from the local market. Some of the differences between crypto order book and local market are as follows;

1. There is no technical and fundamental analysis and no price prediction in local market while in crypto the price of any coin can be predicted with the help of technical analysis.

2. There are no pairs in local market while in crypto most of coins have different trading pairs.

3. There is no order limit of buying and selling and no stop loss features in local market as like crypto order book.

4. Local market depends on the price given by the seller while crypto order book works on the basis of trading volume and coin dominance in themarket.

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.(Answer must be written in own words)

1. Pairs
2. Support and Resistance
3. Limit Order
4. market order

To find the order book in crypto you must have an account in any exchange like bittrex, binance. I am using binance for so long so I will explain the order book through my binance exchange account.

First of all make an account in binance exchange. You can use web or can download binance app from playstore. At the bottom left of binance app there is an option namely market, click on it a new page will open where you can buy any coin with any pair of your choice.
The screenshots of these are given below;

Here you can choose any coin with any pair of your choice. I had choosen Trx/btc.

Pairs:

Trading on crypto market works in pairs. Every coin has its pairs. It is done in such a way that if someone has steem in his exchange and the pairs of steem are btc and eth. If he wants to trade get btc for steem he can trade it and get btc. In simple words you can say that we can buy btc by selling steem and can sell btc to buy steem.

Support and resistance:

In the case of a bear market, there is an expectation that the market will continue to decline. This is referred to as"pump and dump" scenario. When this occurs, investors are forced to sell their holdings in order to protect themselves from the inevitable decline in the value of their investments.
Resistance is preferred when the price of any coin continuously goes upward and touches its maximum point. and then gone down. at the point when your portfolio returns a good profit to you, you must leave the market because after that the price will decrease.

Limit Order:

Basically limit order means to place or set your order on your own satisfied price (different from the existing market price). Let suppose a trader wants to buy a coin namly curve dao token (crv) and the price of crv coin at that time was 3$ but the trader wants to buy it at 2$ so he set his own buying price limit of 2$ depends upon how much you are willing to pay for it. Same case is with selling the coin that if a trader wants to sell bnb coin at 600$ and the price of it at that time was 400$ so he set the selling price limit of that coin at 600$ so that the order get placed once the coin touches that price. This is called limit order.
You can clearly see the selling order in the below screenshot.

Market Order:

If the buyer and the seller sells or buys the coin at the same existing price of that coin at that time then this is known as market order. For example if I wants to buy a bitcoin and the price of bitcoin at that point was 40,000$ and if I buys it without setting a limit then this is called market order.

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 (Answer must be written in own words)

At first have a look at the screenshot of my verified binance account as asked in the question above.

Features Of Crypto Order Book:

Crypto order book maintains the record of all the buying and selling order of crypto pair which the trader has done in the past containing all the current and the past information of the coin including its trading volume, marketcap, circulating supply, history and the overview of that coin. It also shows the every minute price of any coin. Have a look at the screenshot of the order book from my binance account which shows the order book in the the side which is highlighted with green color are for buying orders and the side which is highlighted with red colors are for selling orders.
Here is the screenshot;

The above order book is of sxp/usdt coin. The graph above the order book shows the pumps and dumps of the coin. In order book the word bid is used for for buying an asset and the word ask is used for selling an asset. The prices in the order book changes time to time because it shows the price of coin at the point.

Buying Order:

To buy a coin or an asset firstly you have to go to the market and open order book from there as shown above and then go to the trades page by clicking on buy and get the coin in exchange of any other pair like usdt, btc, trx or whatever you want.

Suppose a trader wants to buy sxp from usdt so he has to go to the trades page and set the amount of how much usdt he is willing to pay for sxp. After that all he has to do is just click on the buy button and the order will get done immediately.

Selling order:

The method for selling a coin is also similar to the method of buying, the only thing which is different is you have to click on sell option instead of buy. After that just set the amount of coin of how much you want to sell and then just hit the sell button. Your coin will get sold in no time.

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.(Answer must be written in own words)

Buying and selling coins by placing stop limit order:

Stop limit order is mostly used to minimize the loss of the individual. The main purpose of using limit order buy a coin when touches its low price. So stop limit order helps us in it once the coin touches its that price then it checks the limit and then you get the coin. To learn how to use stop limit order you just has to go to the trades page, then click on the small arrow which is right below the buy and sell option. After clicking on that arrow a dropdown will appear, click on stop limit in that dropdown as shown in the screenshot below.

After clicking on the stop limit a page will appear where you are supposed to set the stop price, limit order and the amount of the coin which you want to buy.

Same procedure is for selling a coin through stop limit order;

Here I set 1.56 as the stop price and 1.54 as the limit price. The amount of trx I set is 100. Once the the price touches the stop price my order will then execute imediately.

Buying and selling coin through OCO:

OCO is also used to minimize the loss of the individual. It works differently then stop limit order. Suppose a trader wants to sell trx through OCO, he firstly has to set the price of trx at which he wants to sell and then he has to set the price of stop order and limit order. After that has has to put the amount of trx which he wants to sell. It works as if the price of trx touches its limit order it will be executed and stop limit order will be cancelled. But if it goes down and touches the stop limit order the order will placed at the stop price limit and the limit order will be cancelled.

In buying, if the market price of TRX rises and reaches above the limit, a limit order is will be executed and the stop limit order will instantly be cancelled. If the price of an asset falls below the stop price of a stop limit order, the order becomes a limit order and is executed at the limit price. By default, the limit order will be cancelled.

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 should be written in own words that show your experience and understanding)

Their are many advantages of order book and the most important advantage of an order book is that it minimizes the loss and maximize the profit. Their are many features in the order book including market, limit order, stop order limit by working on which an individual can gain more profit and less loss. Crypto order book is really helpful to those who doesn't have much time to put the whole day watching the asset to grow.

One can buy a coin with very less amount by setting a buying order limit of less value so whenever the coin touches that value your order will get executed immediately and when ever you want to sell it sell it at higher price by which you can gain enough profit. Similarly stop order limit and OCO also works in favour of the trader. These are another type of order book where you are not sure of the market trend and its volume so you can set the stop price, limit and amount to gain the profit you are willing to.

Lets take an example, suppose I want to buy a coin namely xrp but its current market value is 3$ and I want to buy it at some dip when it touches 2$ because its prediction is to above 5$ at the end of this month so I set a buying order of it at limit of 2$ so that whenever the coin goes in some dip the order will automatically be executed immediately. Same case is with selling the coin that if I want to sell the coin I will put the selling price limit so that the coin gets sold whenever the coin touches that price. That's how a trader can easily get profit from crypto market.

Conclusion:

After learning the whole features about order book from the post of our respected professor @yousafharoonkhan I can conclude that order book is an important part of crypto market, all you have to do is to learn some basic knowledge of trading and technical analysis by which you can get a some great profitable gains. It makes the crypto trader to work with ease.

That's all from my side I hope you like it an thanks for giving it a read.