Hello all friends,I hope you all are fine.Today i am happy to make for writing my homework post for a Professor @yousafharoonkhan , professor selected a important information in this lecture which is about order book and it's features.

Source

Question : 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 is a financial record book that gives the selling or buying records. Here book refers to written all the data of buying or selling from traders or businessman. it can also records the market detailed let me tell you about the meaning of order book in full details. Crypto order book is slightly different here records of traders are businessman,for example;

cryptocurrency order book is one of used on a Crypto exchange to record all transactions buy / sell to the point in trading pairs of order book. this record will be maintained an order book under the specific section of Sell are Buy order.

Buy Order

For example if you trades to buying STEEM and get BTC the record will be maintained in buying order section in Order book.

Sell Order

Now if you can sell STEEM and get BTC the record of Sellll order will saved in section of order book.

I hope you understand the concept of order book to transaction of Selling order and Buying order in Crypto market.

Difference b/w Crypto order book and Market order book.

Crypto order book	Market order book
Many option which include,limit order,stop limitand other various	Only single trading option
In crypto order book,it volatile which provide different prices for trade option	In market order book,there is not much scope for possesive price because they have not stability price
Trading are in pair system,e.g ; BTC/USDT	No trading pair system,a single currency is used for buy or sell things in local market
The Crypto order book that have maintained decentralize accessible to anywhere in anytime	The local market order book are not accessible to anywhere

Question : 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
• Suuport and Resistance
• Limit order
• Market order

I will be using my verified Binance account for crypto trading to answer these question.Of these two let me explain it with the help of binance app.

• First login your binance app

• Then click on market option as shown in screenshot below

• Click on target pair and next page will pop- up with details.I already selected Doge/BTC as well.If you can't find it then search for your desired option search and put the name of coin for got in screen.

• When you click on the DOGE/BTC you can seen a new page with full details to graphs .And with the help of this graph, you will get the complete details of where it was reached and where it has come now.

• The order book in Red is the Sell book order.
• The order book in Green is the Buy book order.

Trading Pair

In the Cryptomarket a trading pair means the two coins or two assets together on an exchange than can trade for each other. For example the pair I chose above DOGE/BTC. This is a trading pair. Which means you can sell DOGE and buy DOGE or you can sell BTC and buy Doge .It's a crypto trading pair in which we can bring two assets to each other.

Fiat Pair

fiat-based pair is the same as a cryptocurrency-based pair, except one of the assets being converting a fiat currency which means dollars. For example BTC/USD

Support and Resistance

Support is the lowest level where downtrend is expected to pause.Sometimes a coin's price breaks the support level then a huge crash is expected.
The support level is the cheapest point to invest in a coin. People usually buy at this point and then make profit when the trend goes upwards.

Most people buy friends only because it has proved to be a very profitable mind. And it relates to BTC as soon as BTC comes down then it goes down with it everyday.

Limit order.

It is that type of buy or sell order where a buyer or seller places order of an asset at the price differenrent from the spot price or market price.For example, the current price of DOGE is 0.3379, but I do not want it 0.40000 then I will give it a hand and when it reaches there it will be sold on its own. And my wish can be fulfilled in this way

Market order.

It is that type of buy or sell order where a buyer or seller places an order at price that is existing in the market at that point of time. It does not take any time for this type of order to be completed because the buyer is getting his own meaning and amount and the seller is also selling on his own.

Question : 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)

Before i explain with important featutes of order book,let me share the screenshot of my verified binance account as demanded.

Features of order book

As stated, the order book keeps a record of all the business found in the money and the latest thing that is there in it shows us that this market is also keeps about information regarding,volume,supply/demand etc.

So let me explain to demostrate how to place buy or sell in spot market.

Buy Order

Basically it means getting a ransom currency in exchange for some other cryptocurrency or USDT. For this, we have to do one thing, Jati Mantra, for example two, which USDT wanted to buy, I logged into my binance account, then clicked on the market and then click to favourite option because i alreasy chose for favorite but you can search for find as shown in clear of given screenshot.

And in this screen shot you can see that a lot of the quintet is present near USDT, which you can do as you wish, but what I have selected a DOGE/USDT.And when you click on it and opened a order book with graph which is shown below in screenshot.

And as soon as you click on the buying option, an option will appear in the detail, in which you have to give details of how much you have to buy.

You go this amount is written in it, you can invest in your wish, you can invest how much dollars you are investing in it, and then you can click on what is written below, you can buy it.

Sell Order

Selling order means that you want to hand over some cryptocurrencies to someone or transfer them. Or is it your purpose that USDT is given to those who are lying in my steam wallet, for that purpose, buy some coin for that purpose and when it reaches a good price, you can sell it and make a profit.

And this is exactly the same way or like we did DOGE by the same way, we have to do it in the same way for buying DOGE, just by putting the amount of your choice that you have and Sell it.

Question : 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)

Stop Limit Order

The extent of the stop Before ordering, let us understand what this order is. The order is a very beneficial option, which has been launched by Binance in this, is a kind of order whose purpose is to lock in profits or before the price. If we want to put a hand on something, first we will buy it in one hand so that when the price reaches there at that time, it will be bought by itself. In stop limit we need to set in two prices :

• Start of target price is a stop limit order becomes limit order.

• The lowest limit target price is the limit order which like to get executed.

How to place stop-limit order

So finally you open binance account and click on market and select the pair for traders you wish.So as you click, you will see the first two again, one will be buy and the other will be the sell.And click on buy to shown a menu and also show limit option.

![IMG-20210527-WA0019.jpg](

Buy stop-limit order

Demonstrating a buy limit stop-limit order on DOGE/USDT

I will st to stop price at 0.36251 (DOGE per USDT) and limit price at 0.35541(DOGE per USDT).If what I have set the stop limit, if the price of the friend reaches there, then our order was there, we will stop automatically.

Sell stop-limit order

Let me try to sell DOGE for BTC .I set stop at 0.3550 and a limit set at 0.3500.

When the price reached at set limit of DOGE stop price,order will become limit order and and will executed a limit price then automatically sell stop limit order work but no guarantee of execution.

BuY OCO order

Now i will choose the DOGE/USDT pair for this trade. I am placing limit order and a stop-limit order is placed. The OCO Limit the price is set at 0.35150 and the stop-limit order at 0.34980.

When the market price of DOGE is goes up to 0.36111,so it triggers limit and gets executed.The stop limit order is automatically cancelled.Limit order will be cancelled by default.

Sell OCO order
Now executing the sell OCO order. I put the OCO limit at 0.36251 and for the stop-limit order, the stop price at 0.35981 and the stop price at 0.35981.

So If the price reache the limit price of the limit order, it will be completed and the stop-limit order will be cancelled. If the prices go to decrease or loss and hit the stop price, the stop-limit order will be triggered and the order will be carried out at limit price of the stop-limit order. Cancelling out the limit order.

Question : 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)

There are many ways to profit from the corrupt market using order books, some of which have been discovered in it. One way to profit from this is to forbid an order with the letter of profit at all costs. The hand that automatically shows the transaction that there are many benefits such as if you have and if you have to sleep at night you find out that if I put it here you can put it up and sleep when you say So if the prize has reached there, he will buy it himself. There is no limit in the local market because people there feel very much, but a lot of people are taking advantage of the limit set in.Otherwise enough people would be in lossed.There are many advantages to Limit order it is very useful.

Conclusion

When i read the whole lecture,i realize that this lecture is very informative.I have first time learned in full detail of order book and could help to gotten a profit in marketing.We must learn to use them and putt them into practice and in order to take advantages.The complete understanding of features of the order book and how it can be used to get the most out of them and minimize the loss for a successful business traders that is explained in this lecture.

Thanks a lot Professor @yousafharoonkhan for elaborating this useful lecture.This lecture can increase my knowledge.I have made this assignment after a lot of hard work and after a lot of time, I hope you like it.

Mention

@yousafharoonkhan

Regards

@safdarsultan