INTRODUCTION

Greetings to you all my noble Steemians, how are you doing. Today I'm happy to be here to discussed about my homework task with you. First and foremost I sincerely thank professor @yousafharoonkhan for his wonderful lesson on the topic: Exchange order book and its Use and How to place different orders?my Prof I must say I really enjoyed looking at your lesson. And it was from your lesson that I am able to present my homework post. Cheers as you read through.............

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)

Majority of cryptocurrency exchange have an order book, just as the way our local market have. Order book represents the list of buy and sell orders for a specific cryptocurrency which gives traders the right to make decisions with the help of the buy and sell orders offering in a window organized by price. In crypto exchange an order book list out the number of crypto that is offered currently with it price. The list help traders in a way that it provide information concerning trading of asset that is offering at each price and market depth.

The screenshot below is an example of order book in Binance Exchange.

Order book in the cryptocurrency market are differ from our local book which we have seen from the above screenshot. In cryptocurrency exchange order book information are displayed on two sides of the order book called the Buy and Sell.

The Buy order side is colored in green indicating that all the orders that are open within the last traded price which is giving to trader as a way of bit. The Bit is what speak for the buyer when purchasing asset, in this case the bit will allow the buy order to be match with the sell order before the trade can be execute.

Sell orde side, is colored with red, indicating that all the orders that are open above the last traded price. The sell order allow trader to place they sell at they own given price.The crypto order book is this case is far different from our local market book. In the crypto order book a large number of buy orders indicate support, whereas when it becomes a sell orders it indicates a resistance, which which aren't found In the local market.

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

For the purpose of this homework, we will be looking at Binance exchange on how to find order book.

Step 1: On the Binance app homepage, you will see "Market", click on it as shown from the screenshot below.

Step 2: After you have click on "Market" the next things you will see is a page displaying the available pairs,such as Spot, Future,Zones, Name/vol., Last price and 24hour Change.

Step 3: At the page of where the available pairs are displayed, you will see a search bar. Go to the search bar and search for the coin you want to pair, just as in my case I make use of Steem/BTC

Step 4: Next at the Buy and Sell oder page, you have to set your oder the way you want it to be executed. If you want to buy/sell at the current market price select "Market" but if you want to buy when the price is low select "Limit before select the amount of Steem. The screenshot below show a practical example of what am describing about.

The sell is the shown in red color while the green color is the buy.

Pairs

Pairs is a means by which two similar cryptocurrencies are merge together. This mean that one of the crypto can be swap for another or use to buy the other crypto that is pair. For example from the screenshot below I pair Steem/BTC.

You can see that I can easily sell Steem to get Bitcoin (BTC), or use Steem to buy BTC. How can I do this? Let's I currently owns Steem,of which like to buy Bitcoin rather. I go to my Binance exchange order and select Steem/BTC pairs. Binance then displays the current value of BTC and compared with Steem. What I will do is to accept and fill in the amount of Steem and submit a trade to sell Steem for Bitcoin. So that is the little I can explain about pairs.

Support and Resistance

Support and Resistance are two common words that is used in crypto trading to show price level in a charts of which support has to do with downtrend whereas Resistance has to do with Increased. In a nutshell, Support is when the price of crypto go downtrend or pause due to too many demand. This usually occur whenever the price of crypto falls,the demand for is will increases which results to support. Whereas Resistance has to do with when the uptrend is pause for limited period of time, due to too many supply. It usually spring up when prices have increases.

Limit Order

Limit Order is the order that a trader place to buy or sell cryptocurrency at a specific price that is better than that of the current price. If a price is being set at limit order, the order can only be executed when the price get to the limit order. For example I want to sell Steem for Bitcoin, what I will do is to set my limit order at $0.00001548, my order can only be executed when the price is $0.00001548 or an above.thesame thing implies to when buying.

Market Order

Market orders are the order that is meant to be executed at the current market price. If for example I want to buy/sell cryptocurrency and I choose market orders as my preferred choice my transaction will be executed as quickly as possible at the current market price of the crypto am buy/selling.

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)

Some of the important future of oder book are; Buy and sell, prices, and total.

Buy and Sell

This are the two important features of an order book which stand as a price recorder. The buy and sell oder is where transaction are being perform before it can be executed.The buy order side informed a trader of a buyer's order, whereas the sell order side informed about the current pair price of that specific cryptocurrency. The sell side is at the right hand side of the table and all order are red. The number of sales order that is place at giving price level is shown in the place. The screenshot below is and example of Buy and Sell

Total

The total columns show the commulative amount of the specific cryptocurrency sold for several prices.

The total value of the order, which is obtained by multiplying the price of an order with the amount exchanged.

Prices

Here is where the price of the coin is shown. The number in both the buy and sell represents the amount they are bidding for and the price.

Below is the screenshot of my verified Binance Exchange profile

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)

Stop-limit order is an order whereby trader set his order in the market on either high or low price and the order get executed according to the stop limit he set. For example I want to buy or sell Steem and I want this order to be completed according to how I want it to, what I will do is to set a stop limit order as shown from the screenshot below.

From the above screenshot you can see that my price in stop is 0.00001548 which mean if the price for below that my buy order will be place in the market and my limit order should be place at 0.00001548 once I click on Buy the order will be put in the market.

The same process is involves in OCO buy an sell with slice difference which is the price on our profit. In OCO if the market price fall the support level can be stop for we to set a limit order. The screenshot below show a practical example of what am explaining.

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)

An order book is very helpful in trading especially if a trader aim is to be making profit by avoiding loss. One of the way in which the order book has help me in trading is displaying of the buy and sell prices in real time. With the displayed of this information technically, I can easily understand the market trends and the market dynamic over time before placing and order. So can see that with the help of understanding the market because of the displayed of the buy and sell prices I can easily know when to buy or sell coin and make profit and protect my Investment from loss. Understanding the order help traders greatly In the market they are currently trading in or about to enter, am a witness to this. They was a day I wanted to trade Steem in Binance after sending the Steem from my Roqqu wallet in other to use the P2P system, what I discovered was that the price in Binance is lower than that of Roqqu with the help of the order book I decide to put a limit order which the trade become exceuted as soon as it get to the price I set. So I think that studying of the order book, will helps traders to know if a market is support or resistance not healthy. This is because the more we learn an understand about the market, that is the more I formed decision that we can make concerning orders that is to be place.

Thank You All.....