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EXCHANGE ORDER BOOK

what is an order book?

Order book can be defined as a list that contains the record of transactions that have taken place in a crypto market or other markets and it is always observed in pairs i.e the sell and buy orders are contained in the book.

Order book plays an important role in the market, it enables buyers and sellers to know the current trends in the assets to trade for. It shows the list of recorded transactions, it enables trader to know how a cryptocurrency is traded for. Through order book, a buyer can know which crypto currency he should trade with and which cryptocurrencies he can trade for.

Furthermore, order book makes it possible for a trader to know when to buy or sell in the crypto market because making an analysis on the previous transactions will enable him to predict well and he will gain his profit massively, if and only if he knows how make use of the order book judiciously.

What are the differences between the crypto order book and local market order book?

Crypto market order book is a list that contains all the transactions that has taken place trading a cryptocurrency coin in the crypto market, for example, the Bitcoin order book will contain all the buying and selling transactions that has taken place with BTC trading. While local market order book is a list that contains the transaction of a particular commodity in the market which may help buyers to know how such commodity sells in the market and that will in return be used to know the current price of the commodity.

How to find order book using the binance android mobile app :

Step 1: Login to your binance exchange account;
Step 2: scroll down and click on trades;

Step 3 : click on the search button and type in the coin you want to trade

Step 4 : I am using BTC/USDT pair, so I click on it
Step 5 : after clicking on it, scroll down and the order book will be displayed to you.

PAIRS

It is a term that used when trading. When a trader trade in pairs, that means he is trading a crypto coin to another one, i.e he is exchanging a coin say BTC for XRP.

SUPPORT AND RESISTANCE

This is a method used in trading whereby the trader needs to first of all understand the price an asset will be trading for and as at what time will that haapen, if he can successfully do that. Then, he will look out for the support level and his order will only be placed in the market where he thinks the price will be.

LIMIT ORDER

This is a method used in trading whereby a person decides how much coin he wants to buy in the crypto market. For example, if a trader wants to buy an asset at a price that is higher or lower than the current price of such asset, he will do that using the limit order option of trading, only with a condition that such order will only be executed and carried out when the price of such asset reaches the amount that he places at the time he traded using the limit order. For example, if a person wants to buy a crypto coin which is sold at the 1$ and as the time he trades, he wants to buy it at the rate of $5, he will have to wait until the price of such coin increases to $5 before the trading is completed.

MARKET ORDER

This is a method of trading whereby the crypto market decides how much an order will be bought or sold. A person can not decides the price as at the time of trading using the market order. That means such order can only be executed at the market price.

THE IMPORTANCE FEATURES OF ORDER BOOK

1 . It enables the crypto traders to know and see which coin to trade and at what price such coin will be going for.
2 . The order book shows when a transaction. All these can be seen the sell and buy order book.
3 . It shows the total number of buyers and sellers of a crypto coin. The order book also displays the details of the average buy and sell price of a crypto coin, also the total buy and sell orders can as well be seen in the order book.

All these can be seen in the screenshots below:

The red arrow indicates the sell order and the green arrow shows the buy the order.

HOW TO PLACE THE STOP ORDER LIMIT

1 . CLICK ON THE TRADING PAIR YOU WANT TO USE FOR YOUR TRADING IN THE MARKET ;
2 . FILL IN THE EMPTY BOXES AS IT SUITS YOUR TRADING MINDSET
3 . SET IT TO STOP ORDER LIMIT
4 . CLICK ON THE BUY OPTION

HOW TO PLACE THE OCO ORDER

YOU CAN REPEAT THE PROCESS AS IT WAS DONE ON THE EXPLANATION ABOVE, ITS JUST THAT YOU WILL PUT A SELL PRICE ON YOUR PROFIT PRICE.

THE USEFULNESS OF ORDER BOOK IN THE CRYPTO MARKET TO GAIN PROFIT AND PROTECT A TRADER FROM LOSS :

As it has been seen and understood from all the explanations above, the importance of order book can not be over emphasized.
First and foremost, it enables traders to be aware of the price of an asset and in doing that, gain more profit trading such coin. For instance, through the limit order, a trader can sell a crypto coin of a lower amount in a higher and sell it in a more profitable amount and he can as well as buy such coin again at a price that is lower than the actual amount.
Furthermore, order book enables traders to improve in their trading capacity with the technical indicators that are provided by the order book. If such trader fully understands such trading indicators, can gain more profit and lowers the risk of him losing in the market.

My experience:

Though I have not tried using the order book (lol) but I look forward to using it because of the great importance that are attached to it.
Be that as it may, order book will enable me to gain more trading profit as I will want to limit the amount I loss in the market. The dream and prayer of every trader is to make more profit everytime, no trader will want to lose any amount to the market. But with the help of the order book, this is made possible and traders who have been using it to make more profit and I think every trader should know about tis.

In conclusion.

The order book will make trading easy and stress free if you know how to make use of it well.

Thanks to professor @yousafharoonkhan this is my homework post.