Order Book

An order book is in the form of an inventory that has a detailed list of all items on hand in our local market. An order book in other instance can be a book of record of all items that is put on sale or items that has been bought.

This book brings about transparency in trading by providing valuable information to the participants within our local market.

In the case of crypto market, order book refers to any manual or electronic list of buy and sell orders of any security or an assert which is constituted by price levels.
The order book is a list of the total amount of crypto currency that traders in the market wants to sell or buy at the price they want.

• There are three branches of order book and these are:
• Buy order
• Sell order
• Order history

The big difference between the local market order and the crypto order is that, crypto market order is done 24 hours a day, 7 days a week but our local market order has a set time period.

Crypto market trading is done in pairs. That is when I want to exchange STEEM for ETH, I have to look for this two pairs and also set the amount of steem am selling at a particular price I wish to trade.
So with the help the buy order and the sell order and the importance of order history, I would be able to make the right decision during trading.

How To Find Order Books

First of all, you must open an account with any of the crypto currency trading website and login. I do trading with Binance account so we can use that as a case study.
When you login, look for market by clicking on the three short bars on the right corner when you are using mobile phone like mine and click on it.

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A page will then open for you as soon as you click on the market with all the pairs showing with the necessary information like current price and etc given.

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Then type the name of the coin you interested in using the search engine or you can scroll down to select the coin for example STEEM. But you have to click on ALT market to be able to get steem.

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We can now set the order of the trade by clicking on the trade button. That is buy order or sell order. The order history will then guide us to make an intelligent choice.

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What are Pairs

Pair is used to compare the value(cost) of one cryptocurrency with another. This is just like going to visit any store and checking the worth of a product with certain amount with local currency.
Example: I may have steem and may want ETHEREUM instead. I will go to the exchange and select steem/eth trading pair. The value of ETH will display when compared to steem. When I agree, the next thing is to submit to sell or buy.

SUPPORT AND RESISTANCE

Support and Resistance refers to certain price level(graphs) on trading charts that displays buying and selling activities.

Supportis a price level where the value of a coin or an assert stops falling.
Whereas resistance is the level where the price of a coin or assert stops rising.
Most people often starts doing buying activity while sellers are also restricted or hesitant to sell, thereby increasing demand and increasing price.

• Resistance is a price point where prices of coins or assert witnesses restriction on rise movement in the price. This has to do with supply but lower demand which eventually pushes price down.

Limit Order

Limit order allows traders to buy or sell cryptocurrency at certain price levels. When selling, the order will only be done at the limit price. This allows the trader much control of the prices during trading. The trader is guaranteed a fair deal.

Market Order

It is basically a quick way to buy or sell of a cryptocurrency for the best available price with a specific time period. A market order has an instant touch or otherwise it will not be done. Trader who accepts higher prices get the market order first and vice versa.

Important future of order book

The order book guides traders to make intelligent decision. It's our best option to see the real activities of demand and supply of an exchange which helps us in trading with the right people so we can get value for the money. The history guides as with the required trends, prices people are trading and future assessment which is useful for a meaningful choice.

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How to place Buy and Sell orders in Stop-limit trade and OCO?

Stop-Limit

A Stop-Limit Order is when the trader puts a limit on what to trade ( buy or sell) whether the price is high or low or when there is a conditional agreement to buy or sell at a price favourable to both parties. Once they are to meet the market price which is convenient for both parties, trading takes place. There is satisfaction between the buy and the seller when stop limit order is used.

An OCO ORDER
It is a situation where two orders for cryptocurrency are placed simultaneously with the rule that ones one is accepted, the other is automatically cancelled.

So ones for example lower or upper limit is placed, ones the lower is accepted the upper one automatically gets cancelled.

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OCO

How order book help in trading to gain profit and protect from loss

An order book shows the buy and sell prices within a specific period of time ( the site is constantly updated to give an overview of the new trends). It allows market participants to make informed decisions to avoid massive losses in doing trade. Moreover, it helps market participants understand the market trends, changes in prices over a period of time.

In conclusion

The essence of this lesson is to learn ways to ensure that, traders make accurate choice and get high satisfaction in doing business or trade.
Much appreciation goes to @yousafharoonkhan for this great opportunity for us to share our view on the lesson.

It has taken me half of the day to to complete this task considering the workload. Cryptoacademy I think is a full time job if you really want to do and do it well. Thanks to everyone who participated.

Tag: @yousafharoonkhan