Thank you @yousafharoonkhan for the lesson and Home Work Task. Below are the attempts:

What is order book

An order book is a list containing all outstanding purchase or sales orders for a cryptocurrency and it is arranged by price level. Order books are very important in cryptocurrency exchange as it offers a quick visibilities of market prices both for buy and sell also it is impossible to have trade with out buy and sell order, an order to buy is know as bid and an order to sell is no as ask so when there is bid and ask, it leads to trade. The platform that matches the buy and sell order is referred to as matching engine.

Difference between order book and local markets

Order book is the list of orders that shows different amount or offer from buyers and sellers for a cryptocurrency or security. It present the amount that people in the market are willing to pay or sell the asset. In the order market for cryptocurrency, the currency used is mostly cryptocurrency or fiat to cryptocurrency.

Local market on the other hand is just the market where people can buy anything commodity to satisfy the needs and many commodities are always available. Majorly the medium of payment used in the local market is the fiat currency.

How to find order book in an exchange;

I will use the binance exchange to explain this.

You open your binance application on your mobile phone or pc.

You then click on trade the part with the red line below and this will lead you to the next part

This is the part you'll pick the cryptocurrency you will like to put your orders on, there are more than a hundred cryptocurrency and token on the binance network so you pick your choice. I'm picking pancakeswap which is know as cake.

This will be display and you have to click on the OCO which is beside the stop limit. When you click click on OCo it shows the buy which is coloured green and the sell orders which you have to input your orders into the column

There is a chart that binance shows that assits traders to make their choice or analysis, you can use it.

So when you input your orders into the columns, the app automatically keep updates and sell or buy when the cryptocurrency or cake is at your given price.

Pairs in cryptocurrency means assets that are been traded for each other, it might be fiat currency to cryptocurrency or cryptocurrency to another cryptocurrency for example, eth/usd, btc/eth, cake/bnb, eur/doge, etc. The image below is diffrent cryptocurrency pair on binance

Support and resistance is made of two concept which is the support and the resistance

Support is the price level where downtrend is predicted to stop due to a the increase in demand of the cryptocurrency. The law of the demands says the lower the price the higher the deman and this is applicable to cryptocurrency as well so when the price of an asset drops, demand increases and this leads to the support zone.

Resistance is the price level where uptrend is likely to stop or reduction in demand as it is believe a cryptocurrency as reached it highest price level, the crypto sellers usually find this time as the best period to sell.

Support and resistance is use to identify the trend of a cryptocurrency

Limit order is a type of exchange order that you give to purchase or sell a cryptocurrency at a specified price. You pick the price you like to buy or sell your cryptocurrency so when the markets reaches your specified price, your orders will be executed.

The important future of order:

●Market order
●Limit order
●Stop order

Market order is the simplest order as it means the order to sell or buy a crypto assets immediately at the current market price. There is no specific price to buy or sell, the trader can just decide to buy or sell at will and at the present market price. for example if you want 10 eth and it is trading at $2500 each that is $2500, you can just buy it immediately and also sell it at will even if there is loss.

Limit order is very similar to market order but the difference is price, in limit order, the trader gives a specific price that a sales or purchase order can be executed. For example if a trader is intrested in buying 10 eth and eth is sold at $2500 but the trader is willing to pay $2200, the trader can put buy order and wait till the price reaches $2200 but if it doesn't, then the order is canceled.

Stop order is basically a risk management tools, a stop order usually below the current price level and it is triggered when the market price meets the stop price so the cryptocurrency is automatically sold at that amount.

Buying and Selling orders in Stop-limit trade and OCO

Using binance to explain:

You click on the trade at the lower part of the binance app and you use the cryptocurrency of your choice, you then input the the stop,limit and amount column.

base on the image above my stop limits is 2.5 and 3

How to do OCO

You just click on OCO and input the columns and also the price you want.

How order help in trading for profit

The use of order books is very important to traders as it helps them in making analysis about a cryptocurrency, order books take in account the parties involved in trade like the buyers, seller and price and shows trends.

Also it is useful to people who don't really have time for day to day trading, they can just keep their coin and set orders to buy or sell at a particular price also order books helps in minimizing risk as orders are set down to sell if the market keep on falling and it falls to the stop limit.

Thank you for reading my post.

Cc: @steemcurator02