Steemit Crypto Academy | Season 2: Week7 || Exchange order book and its Use and How to place different orders?. By @endersontowers
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After reading your lecture, I am about to carry out the task which is very useful since we allow the learning of the handling of various elements that make up the order of operation of our portfolio. Let's get started.
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 book is basically a book in which all the information on the offer and demand of the client (Purchase and Sale) with respect to products and goods or services is stored, it stores all the required information about which product they are buying, its quantity, and in what value they are buying it, this value is given through negotiation between the buyer and the seller of the product since it can cover different agreed values, these order books or sales record books can be digitally represented , or through a notebook which manually manage the entire record.
Difference between cryptographic order book of our local market.
The difference is that in the case of the cryptographic order book, its mode of use is based on an algorithm and software used for the retention of purchase and sale orders of cryptocurrency pairs, an example, Steem / BTC, which stores a single record that allows us to view all the orders that investors have made in real time, its purchase and sale price is defined by the investor, but in the case of cryptocurrencies it depends entirely on supply and demand so that its price varies. , and many can buy and sell at the desired point as the market is very volatile, unlike the local market order books which depend on the following points.
* The vast majority of books in local markets have books that only the owner of the institution has access to.
* In local markets, the value of assets does not vary much in relation to supply and demand, but most of them define their value through a price standard that they have in their sales area or according to the rules or regulations. of the state.
* In local markets the filling of the order books varies a lot since they are filled manually in relation to the cryptocurrency book that is filled automatically.
* In local markets, as they are not influenced by price volatility, there is no need to worry about placing purchase or sales orders, or performing price prediction analysis or applying theories to determine the value of the asset.
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)
Pairs
Support and Resistance
Limit Order
market order
The first thing we must do to find the order book in the "Pair" of our choice through our exchange, is to enter our personal exchange, which in my case is Binance, once entered, we go to the "Markets" option.
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Once entered in "markets", we will get a series of boxes to select, each option in boxes has a different definition and new elements to inspect in our "pair", but in our case as we are looking for the order book, we enter the selected boxes (Spot Market, BTC Market, Search “steem”, Trade), in my case select the Pair “Steem / BTC.
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Once the "trade" option is selected, we can see on the left side of our candlestick chart, our book of buy and sell orders but on a small scale, to view it more efficiently, we go to the "More" option as indicated.
As we can see, this is the order book of our “Steem / BTC pair, which provides us with purchase and sale data as well as the quantity and the established order.
Pairs
"Pairs", refers to when we carry out a cryptocurrency exchange, either from cryptocurrency to cryptocurrency, or from cryptocurrency to fiat currency, or vice versa, for example, Steem / BTC, or BTC / USDT, with this we can take advantage of the exchange rate that offers us the exchange platforms very quickly.
Support and Resistance
Support
Support is the lowest line that a candle creates in relation to a cycle or series of candles with respect to time, this line corresponds to the lowest part where the cryptocurrency has fallen due to the downtrend and many investors try to stop the decline , placing purchase orders for its attractive price waiting for its rise, is calculated by joining different equal points of a downward cycle in variation at the time.
Resistance
Resistance are the highest points where buyers are able to reach a new bullish point, the point where many are attacked by fear of fomo, where many are afraid to stay in the game and decide to sell by lowering their trend, these high peaks, correspond to resistances, it is calculated by the union of peaks in a cycle
As we can see, the resistance points of the BTC / USDT pair are currently between the 38k standards, and the support points between 31k.
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Limit Order
A limit order can be made in two ways both to buy or sell a cryptocurrency at a better price at which it is at the time of technical analysis, if we want to place a limit order to buy for example the BTC / USDT pair, and in the At the time of performing the technical analysis it is at 38k, and I want to buy it at 36k I place the limit purchase order at that value, if it goes down it grabs it automatically, but if it goes up it does not and you lose the opportunity to have bought at 38k , for the limit sell order, it can be done as follows, if the current price of BTC is at 38k, and for my taste I am not satisfied and through technical analysis I predict that its value will rise to 45k, I place the order of automatic sale at 45k, if the value rises and touches the 45k line, it will be sold automatically, but if it doesn't get there and go down, we can lose the point of sale.
market order
In relation to the market order, it is the order that we place through the value that the current market has, once we place for sale or purchase at the current price, the order is taken and is bought or sold automatically, without any time. to cancel or make a next move, for example if the BTC is at 50k, and a market order is placed at that time, the market will take it 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).
In this image I am proving that my binance profile is fully verified.
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The order book is divided into two formalities, both buying and selling.
In this image we see the way in which we will make the exchange or purchase of BTC, through the BTC / USDT pair, it is very easy to do, in the "price" box we can see the current price in which the BTC is located , and in the "amount" box we will have to place the amount we want to buy, once the amount is selected, the "total" of the amount of USDT we need to acquire the desired amount of BTC appears, if our balance is in accordance with To make the purchase, we can click on "buy BTC" and the BTC will automatically pass into your hands.
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In this image we see the way in which we will carry out the exchange or sale of BTC, through the BTC / USDT pair, it is very easy to do, in the "price" box we can see the current price in which the BTC is located , and in the "amount" box we will have to place the amount we want to sell, once the amount is selected, the "total" of the amount of USDT that we need to sell the desired amount of BTC appears, if our balance in BTC, It is appropriate to make the Sale, we can click on "Sell BTC" and the USDT will automatically pass into your hands.
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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)
Buy and Sell orders in Stop-limit trade
To place an operation order, whether to buy or sell, it is done as follows, by clicking on Stop-Limit, I use the BTC / USDT pair.
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To carry out a BTC purchase operation, we go to the BTC purchase operation panel, in the "stop" box we will put a stop in case the limit order is not taken, in the "limit" box we will put the price we want to buy "To carry out a BTC purchase operation, we go to the BTC purchase operation panel, in the "stop" box we will put a stop in case the limit order is not taken, in the "limit" box we will put the price we want to buy "
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For sale operations, we will do the following, in our operation table, in "stop" we place the limit price at which we want to sell our BTC in case our order does not enter, in "limit" we place the real price where we consider that we should sell.
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Oco orders help us to simplify our operations, with only a basic configuration, oco orders allow us to automatically buy and sell cryptocurrencies, creating buy and sell limits in relation to the current price of the cryptocurrency.
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As we can see in the “oco” purchase operation of our “BTC / USDT” pair.
In the "price" box we will place the stop-limit where our base purchase price will be, if our price reaches that point, the system will open a purchase order, in the "stop" box we will place a standard price in case our cryptocurrency changes trend and it rises a lot, the "limit" will be a limit point in which if it does not get to grab the previous order, it will take it.
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In the case of sales we can see that in the "Price" box we will place the maximum price at which our BTC will be sold in relation to the upward trend, in the "stop" box we will place the lowest price at which we believe it may fall and it will be our stop-loss, where if the value falls more than the agreed limit and does not get to take the sell order, it has the opportunity to exit at a stop.
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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)
My personal opinion regarding the obtaining of profits with respect to the order books in the cryptographic trade, is that the order book has several financial elements that help us to have total control of our investment, we can carry out operations in time real, until placing buy and sell operation orders automatically, as well as "oco" orders which are in charge of selling through a stop-loss, and a sales limit in a positive way, a variety of exchanges have done an excellent job in The implementation of these cryptographic trading windows, currently through a technical analysis, we can perform a good analysis on our cryptocurrency to invest and then take our forecasts in our order book from our Exchange, the way it works is very comfortable and easy to use. understand.
Conclusion
The proper use that we make of our order book as well as the functionality of all the elements that make up the operations portfolio, are essential for a good security control of our assets, we must learn to use them and put them into practice in order to take advantage of These benefits that our exchanges give us, each of the points agreed in the task are very interesting and we must handle them with great care and very fluidly. This topic was excellent, thank you very much for such a valuable topic.
CC.
@yousafharoonkhan
@steemitblog
@steemcurator01
@steemcurator02
@stream4u
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task season 2 week 7.
Thank you very much for taking participate in this class
Grade :7
Thank you teacher @yousafharoonkhan , I did my best to make people who know nothing about the subject understand. regards