STEEMIT CRYPTO ACADEMY: WEEK15 - HOMEWORK POST FOR PROFESSOR @yousafharoonkhan - Exchange order book by @jamezmccoy

in SteemitCryptoAcademy3 years ago

Hello professor @yousafharoonkhan this is my entry post
Question no 1 :
What is meant by order book and how crypto order book differs from our local market.
An order book is basically where information about outstanding transactions in particular or general are being displayed in most cases other recent transactions market price and other information that help an individual that wants to buy or sell. For instance take a look at this screenshot here it has information based on general market buy and sale rate of trx to bnb

20210529_005838.jpg

The order book differs in a lot of ways from our local market In a lot for ways

  • I am yet to see a local store that keeps track and displays different prices that different customers buy thier products I mean cost of service and honestly everyone will keep purchasing at the lowest price possible hence market profit might not be as profitable as it would be if they sold at a fixed price unlike crypto order book cause of market volatility prices always fluctuate up and down so it depends on the buyer you can fix a limit order and buy at the lowest rate chosen or just chose to purchase at market price immediately
  • No local market would tell its customers that "hey you can wait the price of my vegetable is currently 1$ per stack but you can drop 50Cents and when the market price reduces I ll deliver it to you" I mean that Vegetable seller would go bankrupt or might not make as much profit as someone who has just a fixed price, meanwhile in crypto market in our order book one can choose to place a limit order and decide to wait and buy a coin that currently worth 5$ at the rate of 4$ when its available at that rate.
    They are many more differences but I think this two would suffice

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 LOCATE ORDER BOOK ON BINANCE

  • STEP 1
    LOGIN by inputing your registered detail you used on binance

Screenshot_20210529-010712_Chrome.jpg

  • STEP 2
    Your dash board will appear if you are using desktop mode which i recommend if you are usi g mobile phone so you can get full view click on the market button up top.
    Screenshot_20210529-011010_Chrome.jpg
  • STEP 3
    A list of Pairs will appear and you can choose your choice or search

20210529_011336.jpg
Or search
20210529_011510.jpg

  • STEP 4
    If you fillow the previous step closely you will end uo rigth here at order book
    Screenshot_20210529-011852_Chrome.jpg

PAIRS

20210529_012125.jpg

Pairs is simply what you are giving and what you get....its like going to grocery store and paying 5 USD For a pack of Hot sauce the Dollar to hot sauce is what we refer to as a pair... for instance this screenshot shows a pair

SUPPORT AND RESISTANCE
Support and resistance are ussually created when price goes up and down within certain repitive levels, support can be likened to the lower limit that a market price doesn't fluctuate beneath while resistance is like an upper limit where market price doesn't exceed.

LIMIT ORDER

Screenshot_20210529-012534_Chrome.jpg

A Limit order is a type of order that takes time but in most cases its often profitable. You place order and when the market price hits the range you set the order is processed and completed it's a type of order mostly for patient traders. It's also Automated in the sense that you set the range you want and walk away ut does the rest it self like monitor market price and purchases order by itself
MARKET ORDER

Screenshot_20210529-012544_Chrome.jpg

This order type is ussually Manuel and is almost kind of fixed because its already been provided. If one is content with the price given or dosen't have the luxury of time to spend and wait to buy at his own rate one can simply and instantly purchase at market order

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)
SPREAD
This indicates the distance or gap between your buy and sell prices
SUPPLY AND DEMAND

20210529_012915.jpg

The order book helps you to locate and see the rate of buyers to sellers and a big part of making profit with the help of order book is that it helps a trader to know where people are buying and at what rate people are selling, if they are more buyers than sellers cause of they are more buyers more others are being placed and more others are being filled and price migth even end up shooting hence one makes good profit.
MARKET DEPTH
Groups amount of pair orders being bought or sold for easy identification and quick observations

ORDERBOOK TRADING

Screenshot_20210529-013107_Chrome.jpg

This is an amazing feature that was later added on,you know how you will stress and see a sell order and before you look closely ots gone well a new feature was introduced where if you see a ask or bid you like you can just click on it rigth there on the order book and it will enter the order whether it's a buy or sell and you can modify your numbers and you can cancel all others or specific orders.


The order book graphically displays the rate of buyers to sellers in an instant

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)

Here is my verified Binance

IMG-20210529-WA0001.jpg

STOP LIMIT
To place an a buy and sell order in Stop-limit is quite straight forward and basic. First step is you need crypto in your wallet cause its impossible to set up a set Stop-limit without crypto and then pick a pair and wjat you wanna trade it with go to stop limit

Screenshot_20210529-015515_Chrome.jpg

Now if you observe closely what this stop limit enables you to do is manage loss incase your coins dips it will sell at the price you set so you wont loose too much, the stop price such be a little bit higher tha the limit, the stoo serves as a signal for auto sell when it hits the price you set so you dont loose too much now amount is for the percentage of the coin you want to sell same principle applies for buy

OCO
Which simply means one cancel the other is a feature that helps those who trade keenly on a particular coin but the beauty of it is once one of your order is fulfilled the order get cancelled so you dont make profit and loose it at the same time..The OCO is locted closely around stop limit
Screenshot_20210529-020142_Chrome.jpg
Usually after filling out your selected variations

Screenshot_20210529-020613_Chrome.jpg

It creates two orders and once one has been executed it cancels out the other 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

  • Order book gives you instant information like when there is massive supply and little amount of buyers and you also want to sell you will know immediately that thats migth not be the best time to enter market cause the rate of buyers to sellers is low and you may not really sell at a very good rate cause everyone wants to sell so the competition amongst sellers migth lead to price reduction hence loss
  • The automated features of OCO and Stop-limit are a life saver gone are those days where your coins are only trading while your are awake or focused and monitoring them,with the Stop-limit and OCO features you can set your range and go to sleep with out fear of loosing all your cash overnight
  • Crypto trading is very stressful imagine sitting for a full day buying and selling and starting over trying to follow analytics before you can purchase order book simplifies all that matter of fact you dont even have to ever close all your trades cause to open a new trade is just a matter of selecting
  • The Limit-order feature also helps individuals to save a lot although this method takes time but it gives you the option of choosing to wait and get profit or buy ASAP i think this feature is great cause you get to buy at a rate you think is comfortable for you
    Crypto is very volatile as suck one camnot ne too carefull or one can not over study it has lots of technical terms one cant but just learn as much as you can on them to avoid loss, although some belive in just jumping in heads on what ever happens was meant to happen please take your time to read and understand as crypto currency is not something one can just rush into you migth end off bankrupt or worst in debt.

CONCLUSION
One has to learn all the add ons the crypto comes with to gather all the advantage he can to him self its never enough and never too much.
I want to say a big thank you to Proffessor @yousafharoonkhan for this extensive lecture on order book i dont think i have learnt this much about CRYPTOCURRENCY in one day.

Sort:  

Thank you Prof @yousafharoonkhan for your relentless desire to transfer knowledge.

I observed that this post from 2 days ago by @pangoli is yet to get an assessment from you. Having read through it, I've been looking forward to seeing the grade score. I believe he's expecting to see how much grade his work will worth too. Please help clarify this, thank you.

#steemitcryptoacademy #yousafharoonkhan-s2week7 #cryptoacademy #steemexclusive

Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task season 2 week 7.

  • If you look at feature in the order book, you will see a lot of technical and simple advance feature. You have not searched for futures in detail. it is very much important to explore the order book to use the feature that will help you in trade
    Thank you very much for participating in this class. I hope you have benefited from this class.

Grade : 6.5

 3 years ago 

Thank you very much sir...I learnt quite a lot while researching for my assignment twas quite enlightening

Coin Marketplace

STEEM 0.28
TRX 0.12
JST 0.032
BTC 62872.85
ETH 3031.64
USDT 1.00
SBD 3.92