Steemit Crypto Academy | Season 2: Week7 || Exchange order book and its Use and How to place different orders?. @dulce2
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Through the lecture given by the professor and the explanation about the order book I have perfected my knowledge, with this I will do my research, thank you.
Question no 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).
Order Book
The order books in a commercial way, work in such a way that they keep a record of all the orders that are made in a certain area, in the order book a list is created with all the values that the item costs and the amount that arrives the user, it can be carried out manually or digitally through a database, most of the time it is executed through somewhat slow products and exchanges.
Difference between cryptographic order book of our local market.
The deference that exists from the cryptographic order book is related to the price difference established by the user, we call this volatility, in this way users can place orders with variable time according to the trend and this is executed automatically, in addition You can make exchanges for Fiat currencies and cryptocurrencies very quickly, since this is supply and demand to take advantage of prices according to the trend and many users make many exchanges every second.
* In cryptocurrencies, the value where we will buy and where we will sell is defined, in trade there is only one value.
* In cryptocurrencies the order book is freely available and can be viewed by any user, not in commerce, only the manager can do it.
* In cryptocurrencies you can make advance orders at the desired price, in stores you can make advance orders but always setting a value determined by the trade, there is never a change in it.
* Each cryptocurrency has its separate order book, and the order book in stores is totally global.
* The order books of decentralized cryptocurrencies cannot be manipulated, on the contrary the centralized and commercial order books if they are.
* In cryptocurrencies we can observe all purchases made and sales and therefore, we can prepare for a second movement, in the case of traditional order books, not because their value is not volatile.
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).
This way you can find the order book on our preferred exchanger, in my case use binance.
We carry out the following action.
1- Markets.
2- Spot Market.
3- Fiat Market.
4- Search for our cryptocurrency "ETH".
5- Operate.
Source
It will redirect us to the operations screen, where we can see the list of buy and sell orders, and we can expand it through the "More" option.
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Our ethereum order book, where we appreciate ethereum buy and sell orders.
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Pairs
The pairs are pairs of cryptocurrencies that are linked to make an exchange between them, in the following image we can see a large number of exchanges that Ethereum makes with fiat currencies, in this way it can do it with other cryptocurrencies, in general it is called a pair.
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Support and Resistance
Resistances are points where large amounts of sales orders are made, and they far exceed buy orders, through this the value of ethereum goes down, and the so-called resistance is created.
On the contrary, the supports are low lines, in which it has large amounts of purchases that exceed the sell orders and for this sense, the value of ethereum tends to rise.
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Limit Order
In the limit order, it allows us to carry out an operation at the request of the user, this means that the user can place the order at the price they want, and when the price of ethereum reaches that point it is carried out directly.
market order
In the market order it happens that when you place an order you will do so at the price that is in the market, at the updated price, this means that you can benefit if you need to make a purchase and a sale very quickly.
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).
Screenshot of verified profile
Source
The order book depends entirely on the order book, since from it we can be guided by the current price that the cryptocurrency has, according to that, we can make different orders, either for purchase and sales quickly and safely, and also There is the option to place them automatically and at a price very in line with ours.
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Here we can see the limit order which allows us to place an order at the price we want, as cryptocurrencies are extremely volatile, you may take the order if we perform a good technical analysis.
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What I mean is that there are 4 buy orders and 4 automatic sales orders that we can carry out through the order books, this makes the trader feel comfortable and secure about an investment, because he can apply different theories and significant methods. which you can use to do a better job.
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).
For stop-limit operations, we must place the correct data in the operations table of the eth-usdt pair, assuming that we will make a purchase where it says “stop” we will place the purchase value of our cryptocurrency, and in the limit we can place a price greater than the first in case the order is not taken. In the case of sales we can place a sell order above and below the trend, in my case I did it below as a support point.
Source
the oco order is the most complete since it allows us to carry out a large sales operation with a tendency to rise and according to a stop loss with a downtrend, as shown in the image below, it is very easy to use. An example of this would be with our ETH-USDT pair, which we will place 3750 as the value of the uptrend price and as a stop loss we will place 2680 and if it does not sell at that point, place another point below and close to that, of 2675 .
Source
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).
The order book provides us with great reliability in transactions since it allows us to generate an endless amount of orders that the same network will carry out automatically and synchronized, it is very useful to place it underway through our commercial strategies, the order book generates great confidence among investors, since it allows several processes such as buying and selling by limits, by market, by stop limit order, and oco order, on the other hand, we can make the buy and sell order at the price we want and this Information goes directly to the order book which performs a super important role recording all operations and time, where it helps to coordinate all that endless number of transactions so that we can perform free operations.
The order book allows us to carry out security maneuvers which are very useful to carry out safe trades such as stop limit orders and oco order, these orders combined with our strategy, such as reading the analysis had and reading the RSI indicator, would provide us very good profitability with reference to a good investment.
Conclusión
Regarding the order book, I think it is very useful to carry out different ways of trading cryptocurrencies and making a free exchange. The order book helps us to record it and through this, the volatility of the cryptocurrency occurs, I really liked doing the homework, it was a very nice topic, congratulations.
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@yousafharoonkhan
@steemcurator01
@steemcurator02
@steemitblog
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Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task season 2 week 7.
How an order book can help a trader make a profit , , your answer was very much short , need more detail to explore this question۔
You have not specified the OCO order correctly and if you look at the screenshot it is incomplete and you have not specified your order in the text format, . your value are also not look correct ,
Thank you very much for participating in this class. I hope you have benefited from this class.
Grade : 4.7
Good afternoon professor, I do not understand the grades 4.7, 4.9, 5.1 etc, from 1 to 10 points there are 100 different grades, this means that from 50 and below it was the worst that could be, something that is not worth scoring, and of 50 onwards you can say that he did the job correctly and he made himself understood, striving to do it, I do not see any point in placing a bad rating on people who are working hard like me who am a housewife, since the task is extremely long , You have to consider that many of us are benefited from having the sp and the adequate reputation to participate and even so I do not understand why they place a bad rating, I do not see sense to continue doing tasks if I make an effort, using my shop and dedication and even then they do not qualify well , I do not ask for a 10 rating, but the truth is I get a very bad rating I hope you can consider that there are people who want to learn a lot but with this, they do not want to do it. great job for nothing. In my homework I have specified each part as you requested, one thing is that it is incomplete but for that the score is lower than 10 and higher than 5, for regular tasks, the score of 4 is for tasks that did nothing or lacked points , It is something that I do not understand. Excuse me, but when I saw the note I was a little upset. I hope you are aware and I hope you can rate me properly, remembering that I do not ask for a 10, I ask for a correct rating.
@yousafharoonkhan
Oddly - you did not reply to the comment from the Professor on this post that you deleted...
cc @sapwood, @yousafharoonkhan
@sapwood @steemcurator02 Good morning, about that publication it was only an error that I made in the photo only, the teacher explained it very well in the details of the task, it was a photo that I wrote badly because I wrote the name of a user in which she is guiding me How the homework was done, as many do, because it was nothing in the context, it was just a photo and I did it, the teacher knows but she never responded, and because of the anger she had because here no one listens to anyone when This type of thing happens, so I made the decision to delete the publication, "what was I going to do there?" In the publication of the teacher, she very well says that it was due to copyright, it is not plagiarism, it is the copyright of an image, if it were sudo plagiarism of something in the text, the teacher would let it be known in the comments, I am in Is it correct or not? It is always like that when something is plagiarized they always tell it in the comments, it is not fair that they include me in a list just for an image that was not free of copyright.
it is something of conscience
plagiarism of a text is not the same as a simple image taken from an author.
Thank you,
She has been on the grey list as she plagiarized in S2/Week6.