Greetings to all, especially to professor @yousafharoonkhan who once again gives us a great lecture in this case on order book trading.

What is meant by order book and how is the crypto order book different from our local market? explain with examples (the answer must be written in your own words, copy paste or other source will not be accepted)

The order books is something that has existed for a long time and is born from the need of people to buy or sell something. In the order book we can observe the supply and demand of the market, that is, buyers and sellers.

If we talk about an order book from a local market, we can seldom observe it physically or almost never, but it is very common since in a market there are many people who sell the same item at different prices as well as buyers who try to buy said item in an economic price or favorable to them. If all the purchase and sale operations of a market were to be reflected in a book, this would be our order book in which it details the operations and prices of purchase and sale of said items.

Exemplifying the concept of a local order book, we can put it into context: in the fish market there are many sellers who offer the same fish at different prices since buyers look for the cheapest or most accessible price for them.

This is the same way it happens in the world of cryptocurrencies only with specific characteristics, but the order book is observed in the same way, on the one hand, the offers of people who want to sell a currency and on the other hand, the people who want to buy them.

All this occurs through an exchange which compiles all the wishes to buy and sell an asset X, and in which the specifications or conditions that must be met to carry it out are observed.

The cryptographic order book is made up of three elements:

Purchase orders:
this part of the book can be seen as its name indicates all the purchase orders of that asset where the amount in cost that the order represents is specified, as well as the price that you want to buy and they are ordered in a decreasing way according to its price.

Sales orders:
Like the previous element, it specifies the quantity and cost that this order represents as well as its price, but in this case of sales orders and groups all orders according to their cost.

Orders history:
In the order history we can see all the purchase and sale operations that we have carried out.

The cryptographic order book is very important for users since in it you can see the push that the purchases and sales of a particular pair have and it helps technical analysis since in this book we can see the quantity and volume of purchase or sales of that pair as well as the price that users want to buy and sell.

If we seek to differentiate the local order book from the cryptographic one, we can see that the main differences are:

• The pairs, in the traditional market there is normally a fixed pair in this case the currency of that country with the asset or that is in the market, while in the crypto market there are many currencies which have parity with many others there is no fixed pair that prevails, everything is up to the user's taste in which pair they want to exchange.

• Order and speed, in the local market you can see the order book by visiting each seller and finding out the price in which said good is offered, in the crypto market it is all much faster and more orderly since it has its section where you can see all buy and sell orders.

• Stability, local markets are usually more stable than crypto, rarely its price changes significantly, while in the crypto world it is usually much more volatile, the price can increase or decrease significantly only in a matter of minutes.

• Digital, cryptographic order books are viewed in a digitized way while local order books are not.

• Access, in the existing local order books they are not shown to all public and few can access it, while in the cryptographic order book it is open to any user at any time of the day.

Explain how to find the order book on any exchange through a screenshot and also describe each step with text and also explain the words given below (the answer must be written in your own words)
Pairs, Support and Resistance, Limit Order and Market Order

To explain in detail where to find the buy and sell book of any exchange I will use the Poloniex exchange platform running it from its mobile application.

Step 1. I am going to open Poloniex and we go to its spot market, normally when opening the application it opens directly to this section. (Figure 1)

_{Figure 1}

Step 2. In the spot market we must choose the currency pair which we want to observe your order portfolio, in my case I will look for the steem pairs in Poloniex the STEEM / USDT pair is available (Figure 2)

_{Figure 2}

Paso 3. Luego de seleccionar el par este nos dirige a la ventana donde observamos su precio y gráfico, debajo de esto podemos observar la cartera de pedidos en tiempo real de esta par en particular.(Figura 3)

_{Figure 3}

Doing it from the Poloniex app is very easy and simple to locate the order book of any particular pair since after choosing the pair which you want to observe, it shows us all its information such as its price, graph, depth and the order book which we were interested in locating.

Couple: If we place the pairs of the local market we can see that a pair is constantly fixed, example: strawberries / dollar. Well in this same way it happens in the cryptographic world the pair are the assets with which the exchange is incurred, each currency may have many pairs with which to exchange for example: BTC / USDT, BTC / ETH, BTC / DOGE, among others a single currency.

We also have to take into account that not all the coins have peers with others, that is, if we rely on the Poloniex exchange, if I want to change Steem to EOS directly I could not do it since there is no Steem / EOS torque then we would have to use the USDT which.

Support or resistance: support and resistance are strategies that are used by traders and this is focused on the peaks and falls of the prices of a particular asset or pair.

When we talk about resistance, to explain it clearly, we can say that it is the higher or higher price that a pair or an asset has reached in a certain period on a graph.

Resistance is nothing more than the maximum price reached before it starts to decline.

If we talk about support, it is the complete opposite of resistance, support is the minimum price reached by a pair or an asset, in a certain period on a chart.
Support is the lowest price reached before it starts to rise.

Limit order: a limit order, one of the main functions in the crypto-asset exchange, is based on which the user stipulates the price at which he wants to execute the operation and at this reaching it is carried out.

Using a practical example, I have 10 STEEMs that I want to exchange for USDT, but I consider that the price I want to exchange is 0.78 USDT for each STEEM, I placed my limit order with that price and at the market reaching that price my order will be executed.

We have to take into account that if the market price does not reach the price with which I place my limit order, it will not be carried out.

Market order: in this type of order, it is the market that stipulates the price and not the users. This type of market dictates the price of the exchange.

That is, if I want to change my STEEM / USDT, the market is the one that stipulates the price, giving a quick example if I have 10 STEEM and I want to change to USDT, the market is the one that dictates how many USDT I will receive for my 10 STEEM.

Explain the important future of the order book with the help of a screenshot. In the meantime, a screenshot of the verified profile of your Exchange account should appear (the answer must be written in your own words)

Next I will show my verified profile in the Poloniex exchange, where you can see my account is at level 2 after I have completed my verification.

The order book is currently developing a very important role in the market and the exchange of Cryptocurrencies and is that it offers highly relevant information for users and traders. In the order book we can notice the push that buyers and sellers have in real time, it does not offer great information when proposing a strategy since this allows us to observe at what price is being traded or wants to market a para and the volume of transactions you have at that time.

Another important aspect of the order book is the transparency it gives to the market since it clearly shows the price, depth and availability. This portfolio is also very helpful because by observing market movements we can see if users with a large number of currencies begin to have them in the market, which greatly influences its price.

In the capture we can observe the movement of the market and how the buyers and sellers have a constant bid, based on the depth and portfolio of orders, it is observed how the sellers begin to dominate the market which causes the price of said pair to begin to decrease . For these and many more things, users and traders rely more on the order book, which provides them with important and real-time information about what is happening in the market.

Below we can see how to place a buy and sell order on the Poloniex exchange, it does not offer to buy and sell with limit orders where we can specify the price we want to buy or sell.

Purchase order:
As we explained above, we must go to the market, find the pair that we want to trade in this case I will use the TRX / BTC in which it shows us price, depth and its order book.

At the bottom we find the exchange option, after selecting this option we see the window where we will specify the type of order, the price of the exchange, the amount of TRX that we want to obtain and the amount of BTC that it would cost us.

After we specify all the items of our purchases we proceed to give in the buy option that is at the bottom of the window which would proceed to make our purchase order.

Orden de venta:

It is very similar to placing a purchase order, the first steps are the same.

This will lead us to the window of this pair where we observe in the same way its price, graphic, depth and order portfolio.

In its lower part we select to exchange, and like the purchase order does not send to the window where we can do our order, but you are seeing you select at the bottom selling.

At this time if you change the format of our order, in this way we fill the items to make the sale. The type of order, the price, the amount of TRX that we want to sell and the amount of BTC that we will get from our sale.

We select sell at the bottom and the order will proceed with the specifications set forth above.

How to place buy and sell orders in Stop-Limit and OCO operations? Explain through screenshots with verified exchange account.

How to place a stop-limit order
Just like a limit order is placed, I go to the market and choose a specific pair to make my stop-limit.

This directs me to the window where to place my order in this specific type of order to be placed, in which I will choose stop-limit.

After filling in the items of my order in which I place the stop price at 0.00000215 and the limit price 0.00000211 upon reaching my stop price, my trade will be activated at the limit price.

The same happens with the sale.

This reaches the price of the stop-limit which is 0.00000215, the Limit Order is activated by running at the price indicated at Limit 0.00000211, thus processing our operation.

How to place an OCO order
To perform this operation, I will do it through my Binance account since this type of operation is not enabled on the Poloniex exchange.

The first thing I will do will be open my binance application, where it opens me on your home page

I address my market and I choose the couple that I want to operate in this case DOGE / USDT.

Here we observe the graph and everything relevant to the price of the market, we select at the bottom buy.

The window where D does not specify the type of operation is opened, in this case OCO, specify the limit price, STOP limit, USDT price and quantity of DOGE to receive

In this case, on my OCO order, I put my limit price at 0.37000 And for my stop-limit order 0.34738 and a limit price of 0.34718.

In such a way that if the limit price of the order is reached the order will be executed and the stop-limit order will be canceled and if the price falls and touches the stop-limit price this order will be activated and executed at the stop-limit price and canceling the limit order.

How does the order book in trading help you make a profit and protect yourself from losses? Share the technical point of view, which helps to explore the answer.

The order book is a very useful tool when operating in the crypto-asset market, since it is shown from the market price in real time, the volume of operations and the push that supply and demand have in said market. moment.

If we know the volume of operations of a particular pair that we want to trade, we can see who dominates the market at that moment, those who buy or those who sell, and we know that if the market is controlled by buyers, the price of that pair will tend to rise. , while if the market is managed by sellers, the price will begin to fall.

They are one of the things that we can observe with the order book and if we know or according to our technical analysis we foresee that the market is going to rise it is a good time to buy and if it is the opposite it is a good time to sell.

This helps users or traders to generate income since they can foresee what direction the market will take at that moment and they anticipate and carry out operations which favor them and obtain good benefits.

In addition to all this in the orders we can include the stop loss, stop-limit and other functions that this portfolio allows us and thus reduce the risk that our operations do not have benefits.

Conclusion

The order portfolio is a fundamental tool at the time of investing in the market of the cryptomoneds, it is not information from the current price of the market as previous prices, talks about your tendency and push or bid that you have the offer and demand at that time.

It is also allowing us to use other tools such as STOP LOSS, STOP-LIMIT, OCO and other functions that makes the work of users or traders easier to help minimize their losses and increase their profits.

This world of cryptomoneds every one more grows and grows, thousands of people operate and many more are joining, this type of tools are fundamental for the technical analysis that allows us to make a decision of at what time and in what direction to operate