Hello, greetings to the entire community of the crypto academy, especially to professor @yousafharoonkhan for his great conference where he explains very well everything that refers to the order book and its uses. Next I will answer the questions assigned by the teacher for this week's homework.

_{Image made by me in Canva}

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)

An order book is made up of the buy and sell data of the different traders. It is a financial record book, where the purchase or sale price of an asset is indicated, they can be manual or electronic and are used to record the market interest of a specific security or of some financial instrument. Shares are generally quoted by volume and price level.

In cryptomarket, an order book records all trades in pairs, such as STEEM / BTC. Buy orders are recorded in the order book, as well as sell orders, along with the trader's data and the pair with which he is trading.

Regarding the difference of the crypto market order book and the local order book, we can highlight that the local market order book is not public, that is, traders cannot see it, while in the crypto market if it is public, because it is a decentralized market; On the other hand, with the crypto market it is possible to make price predictions through analysis, unlike the local market, since all operations are kept secret. Another notable difference is that in the crypto market, operations are carried out in pairs (example: BTC / USDT), while in the local market, a single currency is generally used.

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)

Pairs

Support and Resistance

Limit Order

Market order

To answer this question I will do it with screenshots of my Binance account.

To find the market book, the first thing we have to do is log into our account.

Select the option that says market as shown in the screenshot.

Different options are shown as we can see: favorites, zones, spot markets and future markets. We select the cash markets option.

The pair of our preference is selected, in this case it was EOS / BTC, we can also search for the pair we want, if it does not appear in the list, we write its name in the search box and it will appear there.

After selecting the pair, the order book will appear as shown below, the one that appears in red is the sales order book and the one that appears in green is the purchase order book.

Pairs: They are made up of two currencies, which allow traders to trade those assets. A very common pair would be EOS / BTC, as shown in the following image, the user can buy BTC in exchange for EOS or buy EOS in exchange for BTC.

Support and Resistance: The resistance in the cryptocurrency market can be observed on the chart of an asset, it is the point at which the price of the asset is highest and it is moving in an uptrend; On the other hand, the support would be the lowest part of the chart, when the price is in a downtrend. These movements are given by the result of the operations of strong traders.

Limit Order: It consists of buying or selling an asset at a price above or below the market price, as the case may be. For example, if the EOS has a cost of 0.0001840 BTC and I want to sell it at 0.0002 BTC, I must establish a limit order with the price at which I want to sell it, the order will be completed when the asset reaches that value and is execute the sale. The same happens when in the opposite case, if I want to buy EOS and I know that it has a price of 0.000184o BTC, but I want to buy it at 0.000150 BTCC, I must establish a limit order at that price and when the asset goes down to That point, there the purchase will be made and the operation will be finalized.

Market order: It is the order established by a trader who wants to buy / sell an asset at the same price as the current market, this type of order is usually completed immediately, since it is trading at the same market price.

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)

The order book, as explained above, is where all the operations of a payment are recorded, it stores information on market capitalization, as well as on volume, supply / demand.

In the following screenshot we can see the order book of my Binance account for the ETH / BTC pair. The orders that appear in red or are the sales orders and those that are shown in green

The order book allows you to place buy or sell orders, to obtain a cryptocurrency in exchange for USDT or in exchange for another cryptocurrency. To buy an order we select the pair for which you want to make the change and we can see the free of existing orders. In the purchase area, the details such as how many BTC we want to buy are completed and it will show us the total amount that we must pay for it, as shown in the screenshot.

For the sale procedure, the same steps are followed, only that we are going to fill in the data in the area that says to sell, there we are going to place the amount of EOS that we want to sell and the amount in BTC that we are going to obtain in exchange will appear.

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)

The stop-limit is an excellent resource that is offered for those people who cannot be aware of their investments all day, this helps them so that if the asset suffers a fall, they can withdraw their investment at a limit price without the need to that generates losses.

How to buy a stop limit order

El primer paso es elegir el par y seleccionar la opción Stop limit, donde debemos establecer un precio límite y el precio de parada. Lo que indica que cuando el precio del activo alcance el precio de parada, se ejecutará la operación.

How to sell a stop limit order

The pair is chosen, the stop price and the limit price are established and we select the sell option. When the price of the asset reaches the stop price, the asset will be sold and the trade will be completed.

How to sell a buy and sell order in OCO

To carry out this type of operation, we select a trading pair in the market, the OCO option is chosen in the buy and sell window.

Buy OCO order: The pair is chosen and the limit order and stop limit are established. This operation works as follows, if the asset reaches the limit price, this order will be executed and the stop limit order will be canceled automatically. And if the price reaches the stop price, the stop order becomes the limit order that will be executed and which in turn will cancel the limit order.

Sell ​​on OCO: In this case if the price reaches the limit order price, the order will not be completed and the stop limit will be canceled. On the contrary, if the price reaches the stop limit, the order will be executed and the limit order will be canceled.

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)

As we have been able to study throughout this task, the order book can be of great help to traders and investors, since it helps to obtain profits safely and helps protect against losses.

One of the most effective ways to obtain profits without risk of loss is the limit order, since it allows to establish a limit price in order to generate an order that will be completed when the asset reaches our limit price. Another of the advantages and benefits of this method is that it allows the user to operate even when he is absent, since the order is completed automatically at the established price.

With the existence of the order book, traders can buy / sell assets at the real market price, not above or below it. And these are orders that are generally executed immediately, on the contrary, if you want to sell / buy at a different price than the market, you only have to create a limit order.

Another way to obtain more profits and reduce the risk of losses is to operate by placing a stop limit and stop price so that our assets are sold / bought at the price that has been established by us.

On the other hand, there is also the possibility of performing OCO operations, where two operations are carried out together and when one of them is completed, the other is automatically canceled, thus giving the user the opportunity to generate profits and reduce losses.

Conclution

The buy and sell order books allow us to carry out operations with the possibility of generating more profits and reducing the risks of loss. This is an issue of great importance for all the people who operate in the crypto market since it helps us to buy or sell our assets at prices that generate profits, giving us the opportunity to withdraw our investment at the right time so as not to generate losses.