Hello Everyone!

This is Sami Zuberi , hope you all are well. I am exceptionally hope set aside a few minutes for perusing my homework post for @yousafharoonkhan and valued it. Here i am going to impart my views on Exchange order book and its Use and How to place different orders. So how about we begin

Question 1.

What is meant by order book and how crypto order book differs from our local market. explain with examples.

Order books include all of the orders that are accessible for trade on the exchange, thus if you want to buy or sell any coin, you may go to that order book. You'd be able to view what other people have offered on the exchange, and you'd be able to accept one of them or make your own offer on the order book. On the bottom, we have orders that are attempting to buy coin. We have the size of the order and we have the price of the order and we have the total amount in the order book. These three components provide us with all of the information we require to make our own offer or accept another's offer on the exchange. On the exchange, the best prices are located close next to each other across the bid. Any price we find that goes further into the order book is the worst price you'll get when buying an order on exchange, so when you try to buy an order on exchange, the exchange will automatically offer you the best price and avoid you from losing money. The spread informs us how far apart the top bid and the best asking price are on this order book, and it's one of the most crucial things to know about order books. On Binance, this spread is often quite tight; the tighter the spread, the less value you lose while executing the trade.

The existence of the trades that correspond with the crypto selling and buying is the main distinction between the local market and the crypto order book. Because there is no product at a price in local markets, there is little room for price discussion. The local trading volume is primarily managed, and thus lacks the updated or current data needed to conduct trades properly. Cease market makers and OCO (place two orders simultaneously) directives, for example, are not available in the market.

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
• Support and Resistance
• Limit Order
• market order

To locate the order book in any exchange, you'll need an account on a cryptocurrency exchange. I have an account on Binance exchange so i will discuss how to find order book in binance, So when you open your account on Binance mobile application where at bottom left you found an option named as market.

Then when you click on that market option a page will appear on screen that contain three options named as Spot, Futures, Zone. Then when you clicked on the spot and search any coin as I searched CHZ coin in below attached screenshot.

After hit/clicked on that coin you will get a new page, On that page you can see a graph on the top of the page and from the bottom side you will see a price in red and green colors. Above graph shows the coin price value, trading volume etc. and that bottom part where prices shown are called order book. That's how you will find an order book on Binance exchange.

Pair.

A duo of cryptocurrencies that are combined to make trading on a digital currency exchange is called pair. It reveals which cryptocurrencies could be traded throughout a deal and is typically called a trading pair.

Support & Resistance.

A support level is a point when price falls and finds support. This indicates that the price is more likely to bounce off than to break through this level. However, as the price crossed this level by a significant amount, there was a bunch of noise. It is expected to continue dropping until it reaches another level of support. The price of support is frequently lower than the present price.

The opposite of a support level is a resistance level. As the price climbs, here is where it usually meets opposition. This indicates that price is more likely to bounce off rather than break through this level. However, after the price has broken over this resistance level by a significant amount, it is likely to continue increasing until it reaches another resistance level. Usually, resistance is found above the present price.

Limit Order.

You can purchase or sell around your own price with a "LIMIT" order. Your order will be executed unless the market hits your limit price. Your order will not be executed if indeed the industry doesn't somehow reach your limit price.

Market Order.

A market order in place to purchase or sell something at the moment of purchase exactly now. A market order must meet the best margin requirement offered on the trading system since market orders are executed immediately. Market orders are useful when getting your order completed promptly is more essential than having a specific value.

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)

One of the main feature of crypto order book is a record of buy and sell orders of crypto pairs along with other details of crypto assets like supply, market cap, volume, price etc. It also shows the every minute price of any coin. Now look at the attached screenshot of my binance verified profile in which order book has shown and there's a highlighted green color figure which is for buying and also there's is highlighted red color figure which is for selling.

Buying Order.

To begin, go to the order book for purchasing orders, where there are highlighted green cells that tell us the price of each minute. As a result, we must choose a trading couple that includes one currency that we already hold in our exchange wallet as well as the other cryptocurrency that we wish to buy. Then choose Buy to receive the coin in exchange for any other pair.

Selling Order.

The technique for selling a coin is identical to the procedure for buying, with the exception that you must press the sell button rather than just the purchase button. After entering into your Binance account, go over to the trading page and select the market you wish to trade. Then go to the Limit order page, specify the price and amount, and click Sell.

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)

Buy Orders in Stop Limit :

A stop limit order is an instruction you provide to the system to perform two things: one, stop the price when a predefined price is achieved, and second, issue a limit order to sell or purchase your crypto at a specific price. A limit order specifies whether to buy or sell a certain coin at a particular price. Setting top limit orders is critical in order to avoid large losses or dumps when you are not physically there to do it. Even if you're awake and watching the market, it's a good idea to create a stop limit order since the market might move so quickly that you won't be able to sell your crypto coins manually. You should set your selling price a bit below the stock price so that you don't miss out if the price falls to what you specified as your stock price but then rises again since the platform won't sell your crypto until the price hits the price you requested it to sell at in the limit order. Another case is when prices are rapidly decreasing; if your sell price is lower than the stock price, the system will have enough time to issue your sale order after the stock price is achieved.

To create a limit order for buying, first go to the trade option, then to the interface where you must search for a coin, and then to another page where the price of the coin is displayed, with two options to buy and sell, and from the very next line there is a drop down with four options: market, limit, stop limit, and oco. When you click the stop limit, an interface will appear where you can define the limit order.

Sell Orders in Stop Limit :

Limit orders may also be used to acquire crypto in order to catch up with a particular crypto currency as it begins to pump and before the price becomes too high; the premise is the same. You may use a variety of circumstances, but the idea is to protect our investment so that we don't lose money or miss out on a pump.

Selling & Buying Order in OCO :

One cancels the other, or OCO, is a feature that allows you to place two orders against the same crypto coin at the same time, but they are only completed at the end of the day. When one of your orders is completed, it cancels the other, which is why the moniker "one cancels the other" was chosen. To set up OCO, go to the Binance app and then to the Exchange interaction. Click on Stop limit order for access a menu bar and choose OCO. OCO orders are a combination of purchasing and selling orders that could be made on Binance.

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).

Because it gives quick and relevant market price knowledge from over registered commodity, an order book is a vital tool to investors and market advisers. One of the most important features of an order book is that it assists us in increasing our profits and reducing our losses by alerting us when the value we are aiming for is reached. An order book displays real-time purchase and buy values. It enables competitors in the market to make excellently judgments. It also aids manufacturers in comprehending business strategies and fluctuations throughout period. The order getting executed regarding the market producers and consumers is the most typical example. A order is purchased information about market cost.

Conclusion.

To conclude, professor gave us a highly educational presentation that helped us to better grasp the order book of exchanges. An order book contains elements such as market, stop limit, and OCO, among others. Also, using an order book allows a trader to generate more profit while reducing the risk of losing money. Traders can make better educated selections regarding their orders if they have more knowledge about the market.

Special mentions to;

@yousafharoonkhan