Crypto Exchange Order Book - How to Find The Order Book on an Exchange and The Benefits of an Order Book

in Project HOPE2 months ago

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One of the amazing things about the binance exchange is the user interface and user experience. Binance exchange has made it easy to locate different aspects of the exchange with ease without any difficulty. Using the web version of binance exchange…

Open the Binance exchange and on the top navigation bar, click on Markets

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The next page contains all the available markets on the Binance exchange. Choose your preferred market. For me, I chose the BTC market.
Choose your preferred crypto asset pair and Click on Trade to open the market. I chose BNB/BTC as my market trading pair.

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You will now see the order book. The order book contains the price in BTC, amount of BNB and the total value in BTC.
On the order book on Binance, the red section represents the sell orders. The green section represents the buy orders.

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How order book help in trading to gain profit and protect from loss?

The order book is very beneficial to crypto traders and investors because it can help in gaining profit and also help in protecting from heavy losses.

  • It can help traders determine when to buy an asset and when to sell an asset. The order books shows the market activities which can be a good indicator for entry and exit.

  • The order book is a very good tool for technical analysis because it is a true indication of what is going on in the market on that particular exchange. Traders can use the order book to study the marker movements, volatility and volume of the asset.

  • It can help to reduce loss with the use of stop loss. Stop loss is a game changer for traders because it means that a trader can avoid heavy losses in a volatile market or when entering a risky trade.

  • It can help traders know when to take profit. The order book is beneficial because if all of a sudden there are a lot of sells, it is a good indication to quickly take profit.

  • It can help to determine the trend direction. If there are a lot of sellers on the order book, it means that the market is going in a downtrend. If there are a lot of buyers, it means that the market is going on an uptrend direction.

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Looking at the chart on the ENJ/USDT pair, for me, The order book has helped me determine when to buy ENJ and when to sell ENJ. The order books shows the market activities which can be a good indicator for entry and exit. I can now figure out a good entry point due to the trend. The market for ENJ has been on a downtrend which means that I can enter the trade knowing the in a matter of weeks or months, the market would correct and move upwards. The yellow line shows the price ENJ has reached previously and is my target price when I enter the trade at $1.4496. This means that if I buy ENJ at 1.4496, I can take profit at $1.90 USDT – $1.93 USDT.

Order book is so important in any exchange and is a key feature for traders. The order book can help traders make a lot of profit and also help traders reduce their losses with features such as stop-limit. Understanding the order book and knowing when to use its different features is a great way to help traders make better decisions in trading.

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Order Book is a useful option that helps us to see the price movement and how other buyers are buying and that too at what price. Its a must have option that must be there.

Very correct. The order book is a very essential component of any crypto exchange

looking at the order book gives you vital info provided you can correlate it well with other trends and patterns on the charts.
Then it becomes that much more useful.

Absolutely. Understanding the order book is key

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