INTRODUCTION

Hello guys,
Since these very program started I have really learnt a whole lot from the various different professors. Sincerely this very program has help me to widen my understanding on blockchain and crypto currency through the lectures delivered by the various professors and my very own little research in carrying out the assignment task. Having attended the lecture delivered by our very own dear professor in the person of @yousafharoonkhan, on the topic ''Exchange order book and its Use and How to place different orders?", I am happy to present my homework task here, this is to prove or indicate my level of understanding concerning the class held by the professor. Please read through as you can learn a bit and also contribute to what I have written so far.

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)

The word order book can be said in a simply terms as a book of orders or it means the book of orders. More also, we can see book in this format as a record that is used to keep track of buying and selling in any establishment. Since we have seen what a book is all about, we can then say that an order book is a book where record are kept that contains buying and selling information that are placed by the buyers and sellers at different rates.

In the case of crypto, order book, records of trade are kept in pairs. For instance, STEEM/BTC, if a person buys STEEM and wish to exchange it to BTC, the record of such transactions will be recorded under the order book of STEEM/BTC buy orders. For sale order, we can see the example; Suppose a trader sells TRX or any of the altcoins and then buys BTC, such a record will take it's position in the sell orders section of the book.

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

I will be using binance app to answer this question because I have an account with binance. There are actually two ways to explore binance. Either using their app or the web. Follow the steps below

• Log in to your Binance app.
• At the bottom panel of the main page , we have option Market.
• Click on it and the next page with
  multiple trading pairs and different markets like spot, futures will load.
• Select any trading pair you wish to look for.
• Here you can search for desired pair.
• In my case I searched for STEEM/BTC.

Just below the price chart of the pair, we got to see "order book". Below order book different orders are listed.

Trading pair

The word pair means two things together. Therefore trading pair can be seen as the pair of two crypto, for example Steem/BTC. Furthermore, this trading pair can be of two types that is crypto to crypto or crypto to fiat. For crypto pair we can say that you can trade steem for bitcoin and verse versa.

Support and Resistance.

Support represent that point in the crypto market where a buy order is placed. Technically, we can say that when ever downtrend is expects to pause, that moment is known as a support stage in the crypto market.

Resistance represent that point in the crypto market where a sell order is placed. Technically, we can say that when ever uptrend is expected to pause. This point is where the trader is expected to place a sell orders.

Limit order.

This is a kind of buy or sell order in which a buyer or a seller places an order on an asset at a price that is different from the current market price. For instance if I decide to sell 1 steem at the rate of $1.5 and at that time the price of steem is $1, that transaction won't take place until the market price of steem reaches the amount I set it. Same thing is applicable to buy order.

Market order.
This is an opposite to limit order because the buyer or seller places his or her buy or sell at the current price of the market. Now it is important to mention here that the transaction will be fast when it comes to execution because it is working with 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)

In the screenshot above, it represens buy and sell open orders of STEEM/BTC from my binance account. The green part indicate buy whereas the red represent sell.

The futures of order book include the following:-

• market order
• limit order
• stop limit order
• oco order.
• sell order
• buy order

Market order.
This is an opposite to limit order because the buyer or seller places his or her buy or sell at the current price of the market. Now it is important to mention here that the transaction will be fast when it comes to execution because it is working with the current market price.

Limit order.

This is a kind of buy or sell order in which a buyer or a seller places an order on an asset at a price that is different from the current market price. For instance if I decide to sell 1 steem at the rate of $1.5 and at that time the price of steem is $1, that transaction won't take place until the market price of steem reaches the amount I set it. Same thing is applicable to buy order.

Buy order.

Buy order simply means an act where you obtain crypto currency which you want to hold using a fiat or other crypto currency. For instance of you have steem and wish to hold BTC, you can exchange steem for BTC.

Sell order.
It is the direct opposite of buy order, here sell order means that you give out the crypto you have in exchange for the crypto or fiat you want.

Below is my verified account on finance

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)

Basic step to place stop - limit orders.

• Open binance account
• click on trade and
• select the pair to be traded.
• Just below buy and sell, there is option limit that has a drop down. Click on limit
• A drop down menu will appear.
• Select stop limit from the menu.

You can then set stop price for BTC and it's limit. once I put any limit price that is when the order will be executed. So the screenshot below shows limit and and stop which will be included for BTC to be executed.

Same thing happens in the sell orders.

Basic step to place stop - OCO orders.

• Open binance account
• click on trade and
• select the pair to be traded.
• Just below buy and sell, there is option limit that has a drop down. Click on limit
• A drop down menu will appear.
• Select OCO from the menu.

Once you click on OCO, you will see the following as shown in the screenshot.

Here you can fill limit price and If the price touches limit price of limit order, it will be executed and stop limit order will be cancelled immediately.

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)

This lesson has really made me learned a lot of different features of order book among which include market order, limit order, stop limit order etc. This features are aimed to help traders maximise their chances of making gain and reducing losses.

As earlier stated, if you hold a coins and then observe that the price has significantly increase and you wish to sell it at that moment, the order book provides that feature of instant sell of such a coins. There fore market order is a sure way of making profit because it's transaction is done within seconds.

Technically we have been able to look at support and resistance as another important factor in the crypto currency market which has help us in no small way in gaining profit.

Conclusion

In conclusion, My appreciation goes to the crypto professor in the person of @yousafharoonkhan for such a wonderful lecture. You have really been one of my best professors because you explain everything to the latest. I have really learnt a whole lot from this class. I hope to learn from you again much sooner.

Special regards;
Cc: @steemitblog
Cc: @yousafharoonkhan

Thanks for for your time