As-Salaam-mu-Alaikum.

I’m excited to be part of this week’s lecture on the topic Exchange order book and it’s uses and how to place different orders given by our crypto academy professor @yousafharoonkhan. This my homework post.

What is meant by order book and how crypto order book differs from our local market?

Order book is a book containing the buying price and the selling price of an asset that keeps the finical records of orders placed by buyers and sellers. It also holds records of transaction that have been placed but not yet executed.
Let’s take a look at this scenario, you make a list of the ingredients you would need to buy when you go the market but you don’t know the exact selling price of the ingredients, you decide to place a price on each of them. You finally got to the market and you had to move around trying to negotiate with the sellers so the price of ingredients meet your price list. The process of gathering information from the different sellers at the market and the list you made already is termed as *Order Book.
Order book is different from our local market. Not only those crypto order book record all the successful transactions of a trade in a pair but it record the trades that have been made but not yet executed. Order book also holds the current bidding and selling prices of assets in the market. The local market order book are not available and accessible by everyone but with crypto order book each and every trader on the current platform can access the order book. The crypto order book an analyzed and organized book so it’s likely for a trader to predict the price of assets and the prices are not driven by the decrease and increase in supply/demand by other governmental or non-governmental bodies.

How to find order book in any given exchange through screenshots and also describe every step with text and also explain the words that are given below.

• Pairs typically means exchanging two assets in a trade. For example: you would like to buy steem but you already some amount of tron in your wallet. All you need to do is find the tron/steem (TRX/STEEM ) pair for this exchange.
• support and resistance Support is when the prices of an asset in the market is bearish again on the charts. The support line assist the the asset in an uptrend manner which is as a result of a lot of traders buying the asset at it’s bearish state. Resistance is the exact opposite of support that is when the price of an asset is seen as bullish.
• Limit order this feature allows a user to decide the price at which they want to buy/sell a particular asset when trading in crypto currency market exchange. You can set the price limit of any aseet you either want to sell and make the order. When the price get to the given price you set it at it gets executed.
• Market order is the order placed by traders on an asset at the market price. Traders can place a buy/sell order. These orders are executed.

How to find order book in binance
1 . Open your binance account and tap on the button at the top right corner of the homepage.

2 . I tapped on markets from the list of pages that appeared.

3 . Search for the pair of assets you want to see its order book or you select from the page any pair of your choice.

4 . It opens the chart of the selected pair. Click on order book.

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.

There are a few important features of order book, these are :
• Bid this feature holds the buy order executed by any pair.it shows all the executed records with the amount of buy order for the asset and It is represented by the green color on the histogram .

• Ask this features holds record of all the sell orders that have been placed. The red color on the histogram represents the ask feature.

A screenshot of my verified account

How to place buy and sell orders in stop-limit trade and OCO?

How to place buy order in stop limit
1 . Tap on Buy

2 . Select stop limit.

3 . Input the stop limit price of the asset and its price.
Select BUY.

How to place sell order in stop limit

1 . Tap on sell.

2 . Select stop limit then imput the stop limit price and the amount. Then select SELL.

How to place buy order in OCO
1 . From the Buy/Sell page. tap buy and select OCO not stop limit.

2 . Input the stop limit and limit price . enter the amount you would buy before you tappon Buy.

How to place sell order in OCO

1 . switch from buy to sell.

2 . Input the required prices and select sell.

How order book help in trading to gain profit and protect from loss? Share technical view point, that help to explore the answer.

Traders can maximize their profit greatly hence preventing loss greatly when they use order correctly. Order book are organized so when a trader studies the trend of an asset in an order book carefully only then would they be able to use it.
We have learnt how to use all the features of order book in this lesson. Traders holding an asset will have access to order book containing the market order where orders are executed immediately
Information given available for traders on order book can be used for fundamental analyses on an asset before placing a buy/sell order on that asset.

Conclusion

The tracking of an asset on the crypto market has been made easy with using order book. So much information on buy/sell on an asset that helps traders make the right decisions.

Thank you…