An Order Book Sample on Binance

Hello everyone,
I'm very pleased to participate in this week's lecture organized by our beloved community @steemitcryptoacademy with our seasoned crypto-professor @yousafharoonkhan which focuses on ORDER MARKET and it's benefits.

This post is still based on the homework task given:

• What is meant by order book and how crypto order book different from local market? Give examples

• Explain how to find the order book in any exchange through screenshots and describe every step with text and explain these words:
  PAIR
  Support and resistance
  Limit Order
  Market Order

• Explain the important features of the order book with screenshots.

• How to place buy and sell order under stop limit and OCO?

• How order book aids in trading?

What is meant by order book and how crypto order book different from local market? Give examples

Order Book is the electronic configuration of the buy order and sell #order of a particular pairs of coins in the trade. It's arrangements depends solely on price level. A list that shows the #buy order and #sell order of a particular pairs of coins in the market with it's prices is called ORDER BOOK.

SCREENSHOTED FROM MY VERIFIED BINANCE ACCOUNT

Another name for the buy order is called bid and usually written in green colors While the other sell order is called the ask and written in red thereby aiding the traders in market and #promote the market transparency because of it's abilities of providing useful data of the trade.

SCREENSHOTED FROM MY VERIFIED BINANCE ACCOUNT

There are other information on the order book includes the prices, Market capitalization, the support and resistance levels of trade with timeframe. Since it's keep up with the real-time price. It's very dynamic and shows the exact effects of the supply and demand influences in the market.

The Difference With Local Market.

However, I'm a merchant in the open or local market. From experience, there's a kind of order book operating in the market but it's not well-defined or documentated. There prices varies between the traders and traders with sellers due to prevailing change of the market factors of demands and supply chains. While in Crypto market, the lists existence is well-known. It's highly documented and dynamic due to the market factors.

Explain how to find the order book in any exchange through screenshots and describe every step with text and explain these words:

PAIR
Support and resistance
Limit Order
Market Order

STEP1

However, I'm using Binance for trade. Which is what I will use to show you order book practically.

STEP 2

This is the SPOT TRADE PAGE On Binance. It displays all the #pairs of coins in the exchange platform but on spot trade medium for instant transactions.

STEP THREE

This is the ORDER BOOK PAGE on the binance. It's comes from the selection of a pair Which MATIC/BNB. Here, it's give the vital information of the trade. Those information includes:
Avg Price
Market capitalization of Both Coins
SUPPORT AND RESISTANCE LEVELS
Timeframe
All of these are clearly labeled and marked in the picture above.

STEP 4

Here, this is the ORDER BOOK with dynamic prices with real-time. It shows the important features of the order book which is the #buy and #sell order. It also contain the OPTIONS at which the order can be traded. Which is limit, market, stop limit and OCO.

PAIR

In Crypto market, coins are transacted in pairs that simply means two perpendicular digital assets displayed on the exchange platforms for trade. Here, both coins can be bought or sold in the quantities, values and corresponding prices.

SUPPORT AND RESISTANCE

In Crypto market, Support is the peak of the price level in the market. Here, there are more sellers than buyers at high prices. While Resistance is the opposite. Here, the price is low and there are more buyers than sellers.

LIMIT ORDER

In the order book, there four basis options for trade. Limit Order is one of them. I'm Limit Order Option, a trader set the desired price at which to trade either to buy or sell. This option is highly beneficial because it allows the transaction to be carried out at the trader's discretion resulting in his/her advantages.

MARKET ORDER

In market order, which is one of the trading options found in the order book. The price is stipulated or pegged According to the market trends which is highly dynamic. I usually use this option when I want to sell coins whose price is very high thereby becoming profitable and it's very fast.

Explain the important features of the order book with screenshots.

There are two important features of the order book. The two are:

BUY ORDER

This is the list of trade for buyers in which all the desired prices that the buyers slated for the coins are recorded. It contains other vital information for them like average price range. Another name for BUY is BIDS. As it's clearly shows that it's a desired bids or prices slated from the buyers.

SELL ORDER

Another name for sell is Ask price. It contains the records of the current selling prices, the amount of coins to be sell at that particular price and other vital information from the sellers in real-time.

How to place buy and sell order under stop limit and OCO?

UNDER STOP LIMIT

In stop limit option, Which is very unique and different from other options. Although similar in some extent with limit option. Because the trader whether in the terms of buying and selling will stipulate the price. For instance, in the picture above, I want to buy the coin #cake from BNB . I will set the stop price(1), Which is the limit Price of BNB for the trade and the amount of the BNB(2) that will be good for me corresponding with the limits and the amount of the cake(3) to buy. Immediately, whenever the price is set, the trade initiated. Same is applicable to selling.

OCO

This option works with the principle of support and resistance levels of the price chart. Thereby protecting the trader from losses and maximizing his gain. In terms of selling, when it get the limit, the market initiates and stop at other limits. These limits are prices stipulated by the trader according it's desired support and resistance levels.

How order book aids in trading?

Order book is very important and useful in trade because of these following:

• It shows the current price in real time
• It's features helps the trader to stipulate prices for the trade.
• It give the overview of the transaction.
• It provides vital information for the trade
• It works with support and resistance levels thereby helping the traders from incurring losses but maximizing profits.

CONCLUSION

Crypto CURRENCIES is the modern financial Tender ledger for trade and it's market is the best but very risky and very dynamic. But with good knowledge like the one of this week on order book, one will make great profits and enjoy the trades too.

ALTHOUGH ALL THE SCREENSHOTS IS GOTTEN EXCLUSIVELY FROM MY BINANCE APP WITH MY ACCOUNT THERE THATS VERIFIED. THIS IS THE PROOF OF EVIDENCE ON MY VERIFIED BINANCE ACCOUNT ON THEIR WEBSITE