Having read through this lecture, it brought flashbacks of the knowledge of economics and how this could be related to the demand and supply system in economics which is the ideal cause of buying and selling in the local market in which when the demand is high the price goes up and vice versa with the supply chain.

I am @kelechisamuel and this is my homework post for @yousafharoonkhan

What is order book
This is a book that shows the participation of buyers and sellers showing the price at which the transaction took place both at the sell point and at the buy point which is being updated per time. This enables anyone who wants to participate in the market to have a detailed idea of what is going on within the market. We can say we have types of order book which include

• crypto order book
• local market order book

Crypto order book: this is the order book found within the circumference of the crypto market in which crypto traders get updated per time on the participation of the Market and Current prices

Local market order book: this is the order book used buy the local market traders to keep stock of the buy and sell sequence within their market

Differences between crypto order book and local market

1) Volatility: unlike the local market, the crypto market is volatile with an immediate update in values of current price per time while the local market isn't as volatile in values like the crypto Market

2) Accessibility: the local market book is not accessible to the entire crowd but the crypto order book is not hidden from the crowd and it is accessible to acms many are on the platform

3) Security: The crypto market order book is highly secured and can't be altered immediately after it has been updated unlike the local market order book that can be altered and stolen if not kept safe

4) indicators: in the crypto market order book, there are indicators that assist in the technical analysis of the book unlike the local order book that has none

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)

It is quite easy to find the order book from the binance application which I will be using for my illustration below are the steps to find the order book on the binance application

• Open the binance application

• Click on market as shown below , also ensure that you are on the spot page

• Search for a coin pair that you wish to explore as seen below, for this illustration, I will be using the pair of CHZ/USDT

• Click on the pair and scroll up, u will see the order book where the figures on green signify buy and those on red signify sell

Pairs: in a layman term, a pair can be described as two similar things that work together bringing it down to the crypto currency, a pair refers to two assets that are used to exchange and trade among each other by comparing the price of one to another

Support and Resistance: support and resistance as the name implies refers to hinderance and upliftment where support is the point in which a coin or asset stops to reduce or fall while resistance or hindrance as I said is a point in which the coin or asset stops rising

Limit Order: this is a system in the exchange order that enables traders and participants to set a price to buy or sell an asset

market order this is an order placed by the trader or participant to buy or sell at the markets best price

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)

Ok in the meantime before I move into the features of the order book, I would like to show a screenshot of my verified account

VERIFIED ACCOUNT PRESENTATION

Features of the order book

1. Buy and sell side : this consists of the two major components of the order book where the buy and sell per time is being documented

2. Bid and ask the bid and ask as the name implies, bid refers to the highest amount a trader is willing to pay while ask refers to the lowest amount a trader is willing to sell

1. Decimal adjustment: the decimal adjument is used to sort figures according to their decimal points this feature is indicated at the right hand side close to the ask

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
So I will will showing how to place a buy order on stop limit

BUY ORDER

• Open the binance application
• Click on market
• Select a coin pair
• Click on buy
• Ensure the drop down menu is set on stop limit as seen below

• Set your stop limit; in this case I set my stop limit to 0.25 an order will be placed when price drops to 0.24 for one CHZ

• You will receive a confirmation message, click confirm to place order

SELL ORDER

• Open the binance application
• Click on market
• Select a coin pair
• Click on buy
• Ensure the drop down menu is set on stop limit
• Set the sell stop limit, for this homework post my stop limit is set to 0.27 and set to place an order when it rises 0.28 for 1 chz

• Confirm the transaction

OCO

Buy order

• Open the binance application
• Click on market
• Select a coin pair
• Click on buy
• Ensure the drop down menu is set on OCO as seen below

• Set the OCO, I set the limit to 0.24 and my stop limit to 0.23 and 0.22 for chz respectively

SELL ORDER

• Open the binance application
• Click on market
• Select a coin pair
• Click on buy
• Ensure the drop down menu is set on OCO
• Set your sell order on the OCO

So that is how to set your stop limit and OCO

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)

In order to master the act of the order book to be able make profit and protect from loss, it is important to be aware of the key points, bid, ask, amount and price this 4 components forms the base of the order book and one needs to have an understanding at his or her finger tips

An order book can help in trading to gain profit in the following ways;

• PRICE AND AMOUNT
  For the sake of this explanation, I will be using an order book for the pair of CHZ/USDT to explain this

From the image above, we can see that the price of CHZ/USDT is 0.26557 and at an amount being ordered to buy is 3862.8

For example if there is an open buy order in the amount of 3862.8 at a price of 0.26557
This indicates that the participant who opened this order would like to purchase the order

A seller who would like to make profit knowing and watching the market that the price which the order has already been made can place an order using the market price and buy the asset saving it for when the asset will rise and sell to make profit

• Support and Resistance
  The order book also can also be of great help to keep a balance between buy and sell of participants to avoid over escalation and also to note the support and resistance systems

For example if we refer to the image above we can see a large amount of buy at 0.26557 this large orders around that particular price can indicate a support and vice versa a large number of order around the sell can indicate a resistance

So the order book is really helpful to make gain and avoid loss

Conclusion
For me, I feel I have really underrated the order book and it's importance, having learnt from the lecture about the order book and the advantages of the order book

I can now say the order book is necessary for our day to day transaction

Cc
@yousafharoonkhan