Crypto Academy is indeed a wonderful initiative by the steemit team and all crypto professors are doing amazing work to make the community learn more about crypto and blockchain.

Question no 1: What is meant by order book and how crypto order book differs from our local market.

Answer-

If we go by the word order book then it's easy to understand that anything that records the transaction of buy and sells orders is known as an order book. We can also say that it is a list of transactions that shows the buy and sell requirement by the users on the platform and this is what we call an order book. Because this crypto space is fully digitalized so we get to know things in digital form and it's all available on the portal itself and gets updated automatically.

In our daily life, we also experience the situation because we usually buy stuff from the market. Are usually go a couple of times a week to the nearest market to buy necessities stuff including vegetables. When I go to market and buy vegetables that is Leica order where I am the buyer and shopkeeper is a seller. the transaction of buy through any shop then it is a transaction which is part of the order book.

There is some difference between the crypto market and in our local market because here in crypto everything is shown on the portal but local market it is not and things happen most on the manual side. There is no order book available in the local market because it's all happens in the manual way however we get to know the prices of various items and as always we try to buy these things at our price. Similarly, in the crypto market, people place their orders as per their price including buy and sell and these are showing in the order book which helps us determine how market sentiments are going on. Even help us to understand whether the amount of sale is higher or the buy is more.

Question no 2: Explain how to find and order book in any exchange

Answer-
I have an account in WazirX which is an Indian exchange and I am sharing the steps that I follow open order book.

• Open https://wazirx.com/ and select the exchange option after login.

• Select pair or market. Here I have INR, USDT, WRX, and BTC so I prefer the INR market pair.

I have selected MATIC coin with INR pair so here its showing buys and sells orders. I have highlighted these coins below. Gree color orders are buying and red is for the sale. Although exchnage has mentioned along with color-coding so its very easy to identity.

Pairs- We generally get the various options to buy any coin including crypto and fiat. Herewith wazirx fiat options are USDT and INR and with crypto, they have WRX and BTC. These are known as pairs so in the above snapshot I have shown for MATIC with INR pair. This arrangement is different from coin to coin and usually not the same for all the points because there is no such hard and fast rule. So we can say that the options that we get to use with coin for buy and sell is known as Pairs and it could be with fiat and crypto both.

Support and Resistance- support is a place where we see a good amount of trading volume with any crypto coin and resistance helps us to stay strong the coin trading at that point. For example, this Matic has very good resistance at 150 and a strong support level at 170 so this is how we can understand it.

Limit Order- Any order that we place as per our price for buy and sell them is called limit order and here we can't decide the price of buying and selling. We can place an order with this option and this will get fulfilled only when there is a match with the buyer or seller at the same price.

Market order- with this option we don't need to select the price because it will be taken by the market and we just need to enter the number of coins for buy or sell. These types of orders are getting fulfilled immediately and no need to wait for the match since the price is taken from the current market price.

Question no 3 : Explain the important future of order book with the help of screenshots

Now since we know about the order book and how to get it so its time for us to understand the feature of the order book. As I already mentioned that its the first and foremost tool that is required for us to determine the market sentiments. I have shared two snapshots and one is based on market depth and another is based on order volume.

Market depth is highlighted and shown with a color code of red and green depending upon buying and sell orders so its easy to understand by now. As I have used arrows to show at what price we have more pressure of buying or selling its quite easy to figure out.

Looking t the below snapshot we can easily identify that there is more selling pressure and at the price of INR 159 majority of sell are happening. As compared to this selling scenario buying is quite less.

Now moving to the order volume side of the order book we can see that selling pressure is more at the price of 160 INR and its reflecting through a long red color candle bar. More of selling is happening between 159 to 160 whereas on buying side some good chunk of buying happening at this level also. Looking at the buy-side we can see that the green bar is there but its not as big as the red one.

Question no 4: How to place Buy and Sell orders in Stop-limit trade and OCO

Answer-

I am sharing the ways to place buy and sell for Stop-limit trade and OCO using bittrex exchange. I will talk one by one through the snapshot.

Here I am showing buy for Stop-limit in ETH/USD pair. The current price is USD 2847 where I want to buy at 2700$ but if the price spike then I want to buy at 2860 which is slightly higher than the market price and this is my limit.

In this window, I am placing a stop-limit sell order ETH/USD pair. I want to sell 1 ETH at $3000 and my limit is $2800 if the price goes down. If my stop loss is triggered then I will lose what I decide and if the upper limit is touched then the profit will come as well.

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OCO

Now I am moving to OCO and its slightly better than stop-limit because it comes with added options.

We need to select the OCO option and then on the buy tab I enter the information as shown below. Here I am placing the order to buy at 2700$ however the higher I can buy at $2870 only and I can consider this as my limit. The advantage with OCO is that if my stop-loss is touched then another one will be canceled with one it will place 2 orders.

This is for OCO sell order and I am sharing the steps.

I want to sell 1 ETH at the price of $3050 but at the same time, I want to put a limit of $2800 if the price falls. so I have both options and it will place 2 orders. Once anyone triggers then others will be canceled automatically.

Question no 5: How order book help in trading to gain profit and protect from loss?

I have shared order book snapshots from wazirx and bittrex exchnage. I don't have an account with Binance and I mainly use wazirx. This exchnage does not provide features as I can see on the snapshots on the lesson post. Seems like I need to create an account on binane and I will try to do it soon.

Although there are no technical options provided what I use an order book as a strong tool that made me understand market sentiment and if I see more orders on the selling side then I prefer to buy because that way I can get coins at the lower price. In the same pattern when I see more people buying that means a bigger volume with green color then I go opposite it and tries to sell off because that is the opportunity to bag some profit in the market.

I am quite new in trading and I focus more on fundamental analysis that has been successful and profit-making for me so far because I do not invest in any kind unless I found it worth the best. Technical analysis is also one of the important factors that I should consider and I am learning more about it but it’s a little tricky and I know that I will have to spend more time to learn more about it.

So far fundamental analysis has been a great tool for me and here with the order book I get to know things easily that how the market is behaving. Probably once I will have the account with bananas and will try to understand and technical points as well then hopefully it will help me understand technical things better. It’s great for those who are using Balance already because they have got the technological advancement by the exchange which is not available as on some other exchanges which I am using.

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In simple words my profit-making strategy is totally based upon fundamental and order book on my success ratio has been hundred percent so far because I never had a loss in my trading journey of last six months and I am very happy with this achievement.

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Summary

It was wonderful learning to know more about the topic related to order book and stop loss. There are so many things that we need to learn and I was aware of very few before this class. I am very happy that with these weekly classes I can enhance my knowledge and thanks to Prof @yousafharoonkhan for sharing this great lesson.

Thank you so much.

(Images are taken from wazirx and bittrex for post purpose only)