HOMEWORK TASK SEASON 2 WEEK 7||EXCHANGES ORDER BOOKS ||BY @qamarsudagar

HELLO ALL STEEMIANS!

Welcome to this post. This post is the homework task for season 2 week 7 of professor @yousafharoonkhan. He has explained the exchange order books its uses and how to sell and buy orders. We will discuss the order books in detail. So let's start our post...

source from professor post

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)

So, first of all, we will discuss that what is the order book. and we will explain and understand it with the help of examples.

ORDER BOOK

• ORDER BOOK is a book in which details of any order are written such as buying and selling of any kind of order. The order book is necessary for all businesses and also in the crypto exchanges. In the order book, it is written in detail that what is the price of any item and what is the demand for the item in any market.

If w took the example from the local market if we go to the local market to buy something of our use. The prices of everything are set but they fluctuate. The buyer wants to buy according to his demand and the seller wants to sell according to his price. both the prices have difference and these both prices are recorded in the book called as order book which have both buying and selling prices for convenience,

• In crypto order book is used to record all the transactions of buying and selling same as that in the local market but the difference is that the exchanges occur in pairs and the volume is also recorded. and

DIFFERENCE

So here we will discuss the crypto order book and market order book.

Crypto order book	Market order book
All the previous transaction records are transparent and everyone that made the transactions can see the ups and downs of markets recorded in the order book and also the previous prices.	In local markets order books the records of previous prices are not transparent but only the seller can see the records of previous prices and ups and downs.
With the help of technical analysis and records in order books, one can buy or sell assets for good results.	Price prediction can not be done in the local market that one can not guess.
The trading pair system is present.	No trading pair system is present.

So there were some differences between the local market order book and crypto order book.
Let's move towards question no .2

QUESTION NO.2

Explain how to find and order a book in any exchange through a screenshot and describe every step with text and explain the words given below. (Answer must be written in own words)

• Pairs
• Support and Resistance
• Limit Order
• market order

---

sO in this question, we will discuss that how can we find the order book of any exchange.

• Go to the browser and click on the Binance.
• Go to the market option as shown in the below screenshot.

source of Binance exchange

• Search the coin

• Click on the more option.

• YOU can see the order book buying and selling orders.

source

So this was a simple and easy method that how can we check the order book I use the pair of steem and BTC on an exchange. And I used Binance exchange.

Pairs

• Trading pairs means that two assets. cryptocurrencies or crypto coins are Linked with each other. As we have discussed above that in crypto trading pairs are used for trading. And they are exchanged with each other. If we talk about their example. There are two types of pairs.

• crypto-crypto pairs:
  An example of crypto-crypto pair is (BTC and ETH)

• Crypto Fait pairs
  An example of Crypto- Fait pair is (STEEM and USDT)

SUPPORT AND RESISTANCE

In trading ups and downs in the market prices occurs.
Support level is the condition when we feel that the trend of downward has been ended and it has seemed that now the upward trend is to start. In this condition, the traders buy assets at low prices To gain more profit in the case of high prices.

Resistance levelWhen the value of any crypto coin or asset rises to its maximum value after which the price does not rise more and begin to fall. In this state, the traders begin to sell their assets to gain much profit. It can be said that it is the highest peak of the market value. You can see the image of support and resistance below.

THE HIGHEST PEAK SHOWS RESISTANCE AND THE LOWEST PEAK SHOWS SUPPORT.

source

LIMIT ORDER

The prices of different markets do not stop on a place the rise and fall of prices occurs during trading. Sometimes it reaches to highest price and sometimes to lowest. A limit order is a factor according to which the selling of assets occurs when the price reaches a certain value. You are notified to sell or buy the assets at the price.

The limit order is divided into two following types.

• Buy limit orders
• Sell limit orders

In buy limit order you are notified when the price reaches a certain value which can be the lowest value buy the assets.
In the sell limit order, you are notified to sell the limit order when the price increases much according to your limit.

MARKET ORDER

If we buy and sell the assets at a certain time then the current time at which we make the order is called a market order.
For example, you buy Steem at 0.62$ price in the market Then the current time at which you make the order is called a market order.

So these were all about the second question. I have answered all the questions that are asked.

QUSETION NO.3

3.Explain the important feature of the order book with the help of a screenshot. In the meantime, a screenshot of your exchange account verified profile should appear (Answer must be written in own words)

My BINANCE ACCOUNT:

This is the small screenshot of my binance verified account.

FEATURES OF ORDER BOOKS

Now we will discuss the features of the order book that are necessary to store the market orders of buying and selling. some features are following.

The first and most important feature of an order book is to buy and sell the orders.

This is the order book and you can see the selling and buying orders on both sides that keep changing continuously.
Here you can see the order book of steem and BTC asset pair in the screenshot above.

Here you can see the price of the order and the amount which is in USDT and the amount BTC.

You can see above the sum of BTC, average price, and the sum of USDT. These are other important features of the order book.

The other important features of the order books are the following in the list.

=> PRICE
=>AMOUNT OF ASSET PAIR
=> TOTAL OR SUM
=> SUM OF USDT
=> SUM OF BTC

Now we will discuss how to buy and sell the order.

BUY ORDER:

To buy orders is very easy. We have to just do some steps:

You have to click on the buy steam option to buy the order. It is the most important feature of the order book to buy orders.

When you want to buy the order you have to put all the information about the amount of the tokens and other information required to confirm the order.

SELL ORDER:

you have to click on the sell order option for selling purposes it is another important feature of the order book. When you want to sell the order of pairs in the market just put out the required information or amount of the asset you want to sell. And then click on the option you can simply sell your order.

These are some features of the order book that I have discussed.

QUESTION NO.4

How to place Buy and Sell orders in Stop-limit trade and OCO,? explain through screenshots with a verified exchange account. you can use any verified exchange account.

METHODS TO PLACE STOP- LIMIT ORDER

Now we will discuss the method to place the Stop-limit order. And we will also discuss how to set buy and stop-limit orders in trading. So, first of all, we will discuss to buy limit order.

Buy stop-limit order:

First stepClick on the stop-limit icon.

Second put the amount you want to buy the order.

Thirdthen click on the buy steem option.

So this was the way to stop-limit order for buying any assets.

Sell Stop-limit order:

Now, will discuss to sell stop limit order.

Firstclick on the sell option.
SECONDput the amount at which you want to sell the order.
Thirdclick simply on the sell steem option.

OCO ORDER

OCO stands for one cancel for the other. In this type of order, two orders are made at the same time. For example, the order of limit and stop-limit are placed at the same time. If the limit order is applied then the stop-limit order cancels the effect of the limit order and vice versa. This type of order is called an OCO order.

Now we discuss that how can we apply for the OCO order in trading to buy and sell the assets for profit.ITs method is very simple.

Buy OCO order:

• To buy an OCO order click on the arrow which is present beside the stop limit as I have shown in the screenshot below.

• Then you have to put out all the information such as Limit order then put out the stop limit order and then price. This is some information that I required from you.

• Then simply click on the Option of buy order.

So this was the simple method to place the oco order for buying the pairs of assets in the market.

Sell OCO order:

This is another process when you want to set out the OCO order to sell the order as I have chosen steem for selling.

• First of all click on the sell option which is present beside the buy option.As you can see in the screenshot below.

• Then put the information required and then simply click on the sell option in this way you can set the OCO order to sell the order or steem.

So this was my complete question.

QUESTION NO.5

Benefits of the Order Book in trading

As we know that this is the era of Cryptocurrencies and everyone likes to invest in cryptocurrencies to earn better and to gain profit from the volatile market of Crypto coins.

As in the above questions, we have discussed the meanings of the Order Book and different important and useful features of the Order Book. Now we will discuss the advantages and the benefits of the Order Book.

Order Book is a digital book containing the sell and buys information of Cryptocurrencies in the form of trading pairs. The buy order and the sell order are the two very important features of the Order Book that help the traders and the investors to keep a constant eye on the variably changing behavior of the Crypto assets. It also helps the traders to keep the trends of the market of a specific coin pair.

There are many important features of the Order Book like the Market Orders, Limit orders, Stop-limit orders, OCO orders, buy orders, and the sell orders respectively. All of these features have been discussed in the above sections.

The order book helps the traders to place an order in the market at the price where they want. If they wanted to sell the coins then they have to place the sell market order and if they have to buy the coins then they have to place the buy market order.

One can also place the limit order and the stop-limit orders according to our taste and likings. Suppose, if I notice an asset when the price of the asset was following the downtrend and after some time there comes the Support level. One has to place a limit buy order then he can place it by simply making a limit where he would like to buy the asset. If the price touches this limit then his order will be automatically placed in the market.

Similarly, one can also place an OCO order in the market of a specific trading pair. OCO order is an order which is the combination of the Limit order and the stop-limit order. If the price is satisfied with the limit order then it will be implemented and the stop-limit will be canceled on its own. Similarly in the case of the stop-limit order.

So above are some important benefits of the Order Book.

CONCLUSION

In this [post we have completely learned about the order book that keeps the information about the crypto buying and selling orders.

I like to learn this information. I hope that the professor will like this post and will give me good grades.

Special mention:

• @yousafharoonkhan

Author:

• @qamarsudagar