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Am delighted to participate in this week assignment of professor @yousafharoonkhan on Exchange order book and its Use and How to place different orders?

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)

Order book as it has been said is the book of order or record of buy/sell order as ordered by the buyers/sellers are written.
the crypto order book in pair is slightly different from our local market order book.

In order book of our local market, the market price of a particular item in a market are not always the same, as we will see different price of a particular item in which customers who want to purchase that item will want to buy at is own convienient price, It can also be said that an order book in the local market is the list of what we need in the local market, as our needs could be rice, fish, Vegetables or many more, these list are said to be the order of items you need in the market, upon getting to the market and trying to purchase these items needed, the buyer wants to buy at their own price from the seller in which there will be different sellers of different price of those particular item in the market and buyer may haggle with the seller to sell at the customers own Price.

While
In the crypto order book, record of trades are kept in pair for example, POND/ETH,
If a trader want to buy POND in which ETH will be paid, the record of this trade will be recorded in the order book of POND/ETH, like wise in the sell option, if a trader want to trade BNB/BTC, the record of this trade will be recorded in the sell order book of BNB/BTC.

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

Have you seen an order book, or do you want to know where to spot your order book in your exchange, follow these step of mine as I put you through screenshots of how to spot your order book option in your binance exchange.

Step 1: log into your exchange, look at the option below in the first page of the exchange and select "market"

Step 2: after selecting the market option it redirect you to a new page where you search for the pair of crypto you want.

Step 3: It takes you to the graph and beneath the graph you then see the option "order book"

Step 5: Select it and the current buy and sell of the pair will review.

Pairs:

This is an exchange of two crypto coin for each other, it can be STEEM for the exchange of BTC or BTC for the exchange of STEEM, Pair in crptocurrency are cryto to crypto or crypto to fait(BTC/USD), an amount of crypto you have will be sacrificed to have a certain amount of another crypto you want to have, this is what is called pair, for example of you have BTC and you want to obtain STEEM, this action is done in pair like STEEM/BTC, This is what we call pair and that is how trade is done in the exchanges.

Support :

when the price of a crypto coin falls in the position of buy it is called support, when an asset is in the oversold position which is buy, the limit to which a crypto falls in the market and expected to stop is called support, one can also say that the level of price in which a crypto falls in the crypto market and expected to stop is called the support level, in this position real trader and investors use this opportunity to buy more and more coin at the support level, so after numerous buy the coin is expected to rise in which they accumulate high profit from the position of a rise in the price of the coin.

Resistance:

This is the position were an uptrend in the price of an asset is expected to stop, the limit at which we see an increase in price of an asset, in this position buyer are expected to sell their asset.

Limit order:

This is one of the type of buy/sell order, it is used when a trader want to buy a crypto pair in his own convenient price, a price of an asset which is extremely different from the market price at that time, you insert the price at which you want to buy or sell the coin and the amount of coin you want to sell.

for example, you can see the current price of this crypto pair STEEM/BTC is 0.00001638 in the market price but I want that same crypto pair for a lesser fee of 0.00001631, you can set a limit order for the crypto pair at 0.00001631 and your action will be fulfilled when the price hit your buy order which is 0.00001631, likewise the same step is also applied in the case of sell order.

Market order:

This is another type of order in which traders buy/sell a crypto pair at the current price of the pair in the market.

in the case this pair STEEM/BTC which the current market price is at 0.00001653, the buy or sell option in this type of order will be carried out according to the current market price.

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)

The important feature of the order book are buy and sell order

Buy order:

Buy in the market can also be said as bid, the buy order informs us of the buyers order, the buy order in the market can also be identified as the green aspect of the order book, buy aspect are for buyers buying a crypto pair at their own convenient price, every buy transaction done on a crypto pair as at the moment of your trade will be recorded in the buy order of that particular pair, the buy option is to buy a crypto pair in the market, or the order of buyer of a crypto coin, as you can see above those are list of buy order as follows.

• Steps of buying a crypto coin are as follows

Login to your exchange of which I will be using the binance exchange, select market below, search for your preferred pair of crypto, click on the pair, select the buy option as seen and then, fill in the blank space with you buy order

The red box identify the number of buy order at the moment.

• Buy order of STEEM/BTC
• step 1: this is the current market price of steem
• Step 2: the amount of STEEM to be bought with BTC at 100 percent
• step 3: this is the amount of BTC in the wallet used to trade STEEM
• step 4: this is the final step where you accomplish your mission of buy, by this you have successfully bought 3STEEM with the amount of BTC in the wallet.

sell order:

As the professor as said, just as buy order informs us of the buyers order likewise the sell order inform us of the sellers asking price of a particular pair of coin , a sell order is the order a seller want to sell a particular pair of coin at his own asking price, the sell order of every seller of a particular crypto coin in the market has a detail of record in the sell order book recorded in the order book, you can spot this easily as it is the red recorded aspect of the order book, when selling, you exchange a particular crypto coin you have in your exchange for another crypto coin you want to have, by doing this there are step you have to follow to sell your crypto for each other.

Login to your exchange of which I will be using the binance exchange, select market below, search for your preferred pair of crypto, click on the pair, use the sell option as seen then, fill in the blank space with your sell order

• The green box identify is the number of sell order at that moment.

• Sell order for STEEM/BTC
• Step 1: the current selling price of steem
• Step 2: the amount of steem to be sold
• Step 3: selling at 100percent of steem
• Step 4: the total amount of BTC acquired from selling steem at 100 percent
• step 5: congratulations you have successfully sold STEEM to BTC.

As asked by the professor this is a screenshot evidence of my verified exchange

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)

It has been a easy way to set a stop limit before executing a trade since the explanation in the professor lecture, the stop limit is the combination of stop loss and limit order in a trade which enable traders to secure profit and if the trade goes other way round, minimum loss will be recorded because of the activation of stop loss, to use a stop limit order, thorough understanding of support and resistance level should be understood before venturing in a trade of using stop limit order.

To place a buy order using stop limit order will be demonstrated below with screenshots.

Login to your exchange of which I will be using the binance exchange, select market below, search for your preferred pair of crypto, click on the pair, use the buy option as seen then, use the drop down button of where you see limit and select the stop limit.

To place the buy order in stop limit order, the pair STEEM/BTC has been chosen as the crypto pair for the buy order.

Although the transaction was not done but You can see above in the screenshot as the limit order set to trigger if the rise in the price of the coin reaches that limit order price we will see a buy order using the stop limit order for the pair but if their is a decrease in the price of the asset the stop loss will be triggered reducing the rate at which loss will occur.

To place a sell order using stop limit order will be demonstrated below with screenshots.

Login to your exchange of which I will be using the binance exchange, select market below, search for your preferred pair of crypto, click on the pair, use the sell option as seen then, use the drop down button of where you see limit and select the stop limit.

To place the sell order in stop limit order, the pair STEEM/BTC has been chosen as the crypto pair for the buy order

STEEM is to be sold to BTC, in this sell order using stop limit order, 0.00001750 is set as the limit order and 0.00001700 is set as the stop loss if we see an increase in price of the asset the limit order will be triggered and the asset is said to be sold.

How to place Buy and Sell orders in Stop-limit trade and OCO.

OCO is the acronym of one-cancel-the-other(OCO) order, in this type of order there is a combination of two orders which are the limit order and the stop limit order, OCO can also be used to take profit and also minimize loss of trade in a crypto market, when an OCO in the buy order is carried out, we place a limit order and a stop limit order in which if any of the order is triggered it automatically cancels the other order.

Login to your exchange of which I will be using the binance exchange, select market below, search for your preferred pair of crypto, click on the pair, use the buy option as seen then, use the drop down button of where you see limit and select the OCO, here you can perform your trade using the buy or sell option in OCO order

Buy and sell order in OCO

This order is carried out if a limit order is set and the stop limit order is also set and we see a rise in the price of the asset which triggers the limit order, the trade will be executed and automatically canceling the stop limit order and if there was a fall in the price if the asset in which the stop limit order was triggered, the limit price will be executed canceling the limit order of the asset, the same way is also implied in the sell order in OCO, if the price of an asset gets to the resistance level, the asset will be sold at the limit order which is the selling price you placed in the space of the limit order, on the other hand if it goes below the support level an triggers the stop limit order, the asset will be sold at the price placed in the limit price inserted by you..

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)

Thorough understanding of the use of order book helps in gaining profit in trade, the limit order, market order and the stop limit order are option used for trading to make gains, trading with one of the types of order books gives trader the position to make profit, for example

• the limit order gives trader the opportunity to place a buy or sell of a particular asset at your own convienent price.
• the market order gives trader to buy or sell an asset at the current market price taking profit in a twinkle of an eye.
• the stop limit order gives position to traders to trade crypto pairs in which the market price trend is not sure but you place your buy/sell order at a higher level or lower level where you take profit if the case was an increase in the price of the asset and a stoploss is set before placing the trade to minimize loss, if the case was otherwise.
• OCO give you the combo of double orders which are the limit order and the stop limit order used in a volatile market to make profit and minimize loss in the market.

The use of support and resistance level in the price of a crypto pair help to gain and minimize loss in the market trend with the use of order book, this levels are identified on a graph of a crypto pair, the dominance in the market can be spotted in the order book where you get to know whether the buy or sell order is dominating the market which give you the price forecasting of the asset, technical indicator in the order book are also use to make profits and minimize loss in a trade with the use of indicators like RSI, EMA, MACD many more with a prior understanding of how they are been used to take advantage of the market and make profit.

Conclusion

The order book is very useful if thorough understanding of how it is been used is bestow on to someone, like the way professor @yousafharoonkhan as added to my knowledge of trade on the use of order book to make profits and minimize loss.