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)

An order book is a book were we record what we need to buy and what we have to sell or the cash we have, to buy what we need. If we go to our local market we carry an order book with our needs, like fruits, vegetables maybe meat or any other thing we need and also we have a budget of how much we are willing to pay for these things. The seller will of course have his own price for what we need, when these prices don't agree with what we are willing to pay we look for another seller or we haggle with the seller to try and have the price reduced. Depending on our need we probably will have to pay more than what we were willing to pay in the first place.

A crypto order book is the same, we have what we need, what we are going to sell and what price we are willing to pay. Crypto order books are necessarily used on crypto exchanges as these are were most crypto trades are made. The big difference with the local market order book is that our crypto orders are made only with pairs. This means, for example that I have DOGE and I want to buy STEEM, so I look up this pair on the exchange I am using and I set the price of how much STEEM I expect for my DOGE. The price I expect will have to be in the trading range between these two coins. Of course there are two reasons for making this exchange, one is I need STEEM in this case for maybe powering up or the other is that I expect STEEM's price to go up and I am looking for a profit. If I expect a big hike in STEEM's price I can make a very good offer and my trade will happen very quickly. But the exchange order book helps me to not make mistakes in my trades, because with its history of trades and current market values I can make intelligent assessments of what I can spend.

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

How to find order book

First, of course, you have to log in to your exchange, in this case Binance, and look for MARKET:

After clicking on market you will come to a page with all of the pairs available, market caps, current prices and other pertinent information.

Then I type the name of the coin I am interested in, let's say Steem in the search box, and I find its pairing with Bitcoin.

And now we come to where we will set the orders for our trade by, of course clicking on the trade button, you can either set a buy order or a sell order, and use the history that appears here with filled or active orders and use our investigations, history and let's say it, our gut feelings to set the price of our buy or sell order.

What are Pairs?

Pairs are how trading is done on crypto exchanges, it works this way, you have a certain amount of DOGE and you want to buy STEEM so the pair is DOGE/STEEM, the price that you offer for buying or selling will depend, if you are rade savvy on the exchange's order book, you will offer a certain amount of your crypto for a certain amount of the crypto you want.

What is Support and Resistance

Support is a limit as to how low a crypto will fall and resistance is the limit of where the crypto can rise to, these levels are arrived at by studying the investmensts made by people, the support level is an average of the price at what a crypto has been bought, if the price goes below this we will probably sse some panic selling and even further drops in the price, this is probably where the smart people make their buys, the resistance is the highest level at which a crypto has been sold, if it goes above this we can see either a bull run or the right moment to sell what you have. This theory is not always correct and you can make mistakes believing your timing is right, still it is a way to measure your investment runs.

What is a Limit Order

You put a limit on how low or high you are willing to sell your crypto, whenever either end is reached your trade is made. This is really a way of offsetting losses and I think most traders use this tool quite often.

What is a Market Order

Instead of you putting the price on your cryto trade you sell or buy according to what the market price is at the moment you place your trade, I don't like this one, it limits what you have decided to do with your crypto.

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)

I will use one of the screen shots I used above:

As you can see in this graphic we have about all the information that we require to make our trade, we have a history of the price, the ongoing trends, the prices people are selling or buying for. In other words with an order book we have a clear idea of what ourbest option is. Of course, as everything in crypto it is not a 100% sure thing but it is a tool that really helps.

And following is my Binance verification page, I am not sure if this is exactly what you want.

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)

A Stop-Limit Order is when you put a limit on how high or low you want to sell or buy a crypto asset, once the price is met the trade takes place, this limits losses and also let's you sell at a price that gives you a reasonable gain, an OCO order just makes the trade once the lower or upper limit is reached, the limit reached cancels the other limit.

Stop-Limit Order:

OCO Order:

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)

First of all an order book gives you an overall view of the trend or trends of coin pairs that you are interested in, there history, market caps, trade volumes, charts of movements and the current prices people are willing to buy or sell said pairs. This helps you to not make mistakes like selling too low and probably losing money or selling too high and not being able to sell your assets. Also by using the different selling options like limits, stops etc, you actually are insuring you will most likely make money and in the worst case scenario lose as little as possible.

Conclussions:

An order book on a crypto exchange is a must tool to use, it helps to make the most important decisions in your trading.

As an apart I really did learn something with this lesson and I even verified my Binance account which I hadn't done, the Steemit Crypto Academy is helping me understand a lot of things and as an added benefit I am learning to format my posts better than ever. I am still a long way from where I want to be in my presentations but I am improving. I still think I could be more orderly but I have never been good at that.

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