**INTRODUCTION** _Hello everyone, i am very delighted to take part in this lecture and i hope you are all doing great. This is my homework post for professor @yousafharoonkhan and it is about ORDER BOOK._ **ORDER BOOK** _An order book simply refers to an electronic or written list of orders for purchasing and selling specific securities or financial instruments classified by price level. The order book lists the number of stocks offered or offered at each price point or each market depth. Order books enable us to identify market participants behind the purchase and sell orders, although some people prefer to remain unknown. These lists help traders and increase market transparency by providing valuable business insights._ **HOW CRYPTOCURRENCY ORDER BOOK DIFFERS FROM OUR LOCAL MARKET** _The difference between them is that the cryptocurrency order book lists orders of buying and selling of specific trading pairs, for instance, a trade between Ethereum and Bitcoin written as ETH/BTC. A single asset in the market can be paired with more than two as shown in the picture below. The records are saved/stored automatically by software and can be accessed by traders worldwide without any permissions required._ ![Screenshot (249).png](https://cdn.steemitimages.com/DQmZoBzQyDrhsZpa3CURPiHXbaC1tTHRrHBpeWaZtSt68GB/Screenshot%20(249).png) _While our local market on the other hand stores order book manually. The records/contents stored in the book cannot be accessed or viewed by traders, unlike cryptocurrency order books. In addition, the local market is not affected by price fluctuations, and there is no need for traders to worry about placing a buy and sell order or carry out price forecast analysis to determine the price/value of assets. In the local market, only fiat currency is used because it is the only exchange accepted by local traders, while in cryptocurrency, assets have different currency pairs to trade with._ **HOW TO FIND ORDER BOOK IN ANY EXCHANGE** _I will be using Binance exchange to point out the way to find an order book._ _STEP **1**:_ _Open the associate browser of your selection and explore for Binance and login if you already have an account, or just click on the link as shown within the image to access Binance. [Click on me to access Binance]( https://www.binance.com/en)_ ![Screenshot (254).png](https://cdn.steemitimages.com/DQmYRznwsQjx2vd9T4CuxUhuJKWZvvGW5c3dACeaAJTtrSF/Screenshot%20(254).png) _STEP **2**:_ _On the Binance homepage, locate the option, **Markets** and click on it._ ![Screenshot (247).png](https://cdn.steemitimages.com/DQmZpWRWuNMrGoF6xmsJVvbdGTiqbLepLaJF7aCdZXzyJm1/Screenshot%20(247).png) _Once the exchange page is opened, it is now up to us to decide on our preferred pair from the options provided._ _Therefore I will be searching for the order book of **ETH/BTC** by foremost clicking on **BTC Markets** from the **Spot market** options. Loads of pairs will be seen, however luckily on my behalf, my selection is {simply} above._ _However, just in case you would like to decide on a distinct pair you'll be able to simply search it within the **search box** provided as shown in the below picture._ ![Screenshot (271).png](https://cdn.steemitimages.com/DQmY5C6oQkNzgjD2o5J3C3rfA6MUvQuvC2PBHT3sEnBQS3N/Screenshot%20(271).png) _STEP **3**:_ _The image below is the trading pair I selected (ETH/BTC) once clicking on **trade** from the BTC Market. Now, locate **More** on the left aspect of the page and click on it._ ![Screenshot (256).png](https://cdn.steemitimages.com/DQmZZq2SGEyn8AtZJRUaTsNX8yLxzrhfpUjDfYoL9caxYUu/Screenshot%20(256).png) _STEP **4**:_ _This is the **Order book** of the trading pair I selected earlier, which provides the number and value of the purchased or sold assets._ ![Screenshot (257).png](https://cdn.steemitimages.com/DQmYLKWWD9MBodd1GtPQ9Up5gWSBYrgbAxjbX4v5Fnsc4r1/Screenshot%20(257).png) **PAIRS** _Trading pairs are assets that can be traded together on an exchange.). When buying and selling cryptocurrencies, local currencies are usually used for transactions. For example, if you want to purchase or sell Bitcoin in U.S. dollars, the trading pair is BTC to U.S. dollars (BTC/USD) Similarly, you can trade with other cryptocurrencies in the same way. Therefore, when Bitcoin and Ethereum are traded, the transaction pair is from ETH to BTC (ETH/BTC) There can be many trading pairs between currencies, such as STEEM/Bitcoin (STEEM/BTC)._ **SUPPORT AND RESISTANCE** _Support and resistance are displayed as horizontal or inclined lines. **Support** refers to the price level at which prices tend to recover after a period of a downtrend. At this level, demand usually rises and prevents buyers from falling further after finding the price. The price is sufficient to attract buyers, and the seller is unlikely to sell. If the support level cannot be maintained and the price of the cryptocurrency continues to fall, it indicates an increase in bearish sentiment._ _**Resistance** is the opposite of support. Resistance means that buyers are unlikely to buy currency at this price level, and those who own or buy stocks find the price attractive enough to buy and sell. We can say that the resistance level is the highest price at which a cryptocurrency market participant can value an asset during the period. In the context of increased demand and bullish sentiment among market participants, this overcomes the resistance level and the price finds a new, higher, and earlier resistance. Resistance levels can become support lines. Conversely, if the price is much higher than the drawn line, the previous support level may also become resistance._ **LIMIT ORDER** _A limit order is an order that you (a trader) adds to the order book at a certain limit price. Therefore, when you place a limit order, it executes the transaction only when the market price reaches its limit price (or higher). Therefore, you can use limit orders to buy at a price lower than the current market price or sell at a price higher than the market price._ **MARKET ORDER** _A market order attempts to buy or sell at the current market price. It purchases and sells limit orders currently available in the order book. This may lead to "slippage" (if there are not enough limit orders to place a market order at a certain price, the price of the market buy order will be slightly higher or the market sell order will be slightly lower). During unstable periods, slippage can be significant. Usually, you pay commissions for market orders._ **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)** _Below is a screenshot of my Binance account verified as required._ ![Screenshot (265).png](https://cdn.steemitimages.com/DQmYnJyKHvfbyr8FGk2Nj6EfDVBo8Q34fJBjvD4mFQuNkck/Screenshot%20(265).png) **ORDER BOOK FEATURES** _The order book contains many great futures, but the most interesting is the trader's buy order (This is the part of the order book where we can find all the purchase orders of the trader. It represents the value of the order placed by the buyer at the marginal price from the most expensive to the lowest) and sell orders (all transactions of the trader can be found here) of the trading pair, as well as some specific asset details, such as price and market value. The following is a screenshot I took with my Binance account._ ![Screenshot (264).png](https://cdn.steemitimages.com/DQmeNzCrQtJzRuHn4PizCPbyFEesifYwgce9QbPeGK14KWY/Screenshot%20(264).png) _I will use it to show the difference between buying and sell orders. I have clearly stated in the screenshot above the buy and sell order for STEEM/BTC, there are many transactions (always going on) in the market. Let us continue to place orders because we know the difference between them._ **BUY ORDER (BID)** _As with the purchase order, you must first select a trading pair according to the processes I showed earlier, thus; Click on the market and select the spot market. Now, select or search for a market pair from the options shown in the image below, and then click "Trade" to enter the market._ ![Screenshot (269).png](https://cdn.steemitimages.com/DQmdtN8B69jjP4wfq7QTeqw6eXX5xAwPZFCp41etaD7Y7EZ/Screenshot%20(269).png) _Therefore, in the above picture, the pair I chose is STEEM/BTC; I want to buy STEEM with BTC._ _On the market page, all you have to do is locate where the buy page is and provide the details needed to purchase your asset successfully. In the picture below, you can see my purchase page, which points out the fields that must be filled before purchasing my assets (STEEM). The percentage in the picture indicates that you can buy a certain percentage of the total amount in the wallet. Click "**Buy STEEM**" (your currency name) to place your order . Unfortunately, there is no money in my wallet to show real examples. Just follow the instructions._ ![Screenshot (274).png](https://cdn.steemitimages.com/DQmS4a2qw3YX8s3HY3NsKfcgCi3py78U67m6gCZD1WERxrV/Screenshot%20(274).png) **SELL ORDER (ASK)** _Placing a sell order is just like a purchase order using the same steps to enter the market area, but this time around, we will locate the sell page. To convert STEEM to BTC, please enter the amount of STEEM you want to exchange in the "Amount section" then click "**Sell STEEM**" to place an order. My balance is less to complete the process, but that's all the steps you need to know to sell your assets._ ![Screenshot (276).png](https://cdn.steemitimages.com/DQmcZ3vCjqyCGGdmyhft15SH24BFAQentnbLvXrfwVwJTDW/Screenshot%20(276).png) **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 refers to other types of orders, including limit orders (orders to buy or sell a specific number of stocks at a certain price or higher) and stop orders (orders to buy or sell securities that exceed a certain level). The steps to place a buy and sell orders are listed below._ **HOW TO PLACE A STOP-LIMIT ORDER** _To place a stop-limit order, open your exchange account (I will be using Binance) and login. Now click on Markets from the homepage options and select your trading pair (assets) and enter the market page by selecting trade._ _On the Spot market platform, locate the buy side on the left side of the platform and click on Stop-limit. This option will enable you to place a stop-limit buy order._ _Based on the below screenshot, when the STEEM price drops to 0.00000710 BTC or below, an order will be executed to purchase 50 STEEM at 0.00000688 BTC after you click on BUY STEEM._ ![Screenshot (282).png](https://cdn.steemitimages.com/DQmVugg8H64TUJ3VC6WQjgZPsZjnMianh9GMU7jZGVUj6Yk/Screenshot%20(282).png) **HOW A STOP-LIMIT SELL ORDER IS PLACED** _Select the trading pair from the Spot Market._ _Enter the Spot Market platform by clicking on the trade option._ _Move your mouse pointer to the sell-side (in red) and click on stop-limit. Insert the value of stop and limit just like the picture below and click on **BUY STEEM** to trigger the order._ ![Screenshot (284).png](https://cdn.steemitimages.com/DQmSq75GDdFPCbJyC8267wpXZ7gegAmxeTTR3DAhiPrPpf9/Screenshot%20(284).png) **HOW TO PLACE BUY AND SELL ORDERS IN OCO** _An OCO (One cancels another) order allows you to place two orders at the same time. It combines a limit order and a stop-limit order, but only one of the two can be executed. In other words, once one of the orders is partially or fully fulfilled, the remaining orders will be automatically canceled. When trading on exchanges ( Binance to be specific), you can use OCO orders as the main form. Using this function, you can place two limit orders at the same time. This helps generate profits and minimize potential losses._ **STEPS TO PLACE A BUY OR SELL ORDER IN OCO** _1. Select your trade pair and enter the Spot Market (STEEM/BTC)._ _2. Navigate to the buy order and click on the stop-limit option._ _3. From the drop down options, click on OCO._ _4. Now the stop-limit and the limit can both be found on the OCO options as shown in the picture below._ _5. Input the values of you stop-limit order, price and the stop-limit price of your asset._ _6. Click on BUY STEEM in my case to place order._ _If the asset (STEEM) price falls and touches the stop price of the stop-limit order, the stop-limit order will then become a limit order and executes at the limit price inputted by the trader. The same implies for both the buy and sell OCO orders._ ![Screenshot (287).png](https://cdn.steemitimages.com/DQmWLS8jmi5oSei8iYQKTZe7srNcxbtkRMBr9522Wq7PrLX/Screenshot%20(287).png) **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)** The order book actually helps us in a lot of ways which enable traders to gain profit some of which includes, _1. The order book helps traders to understand the supply and demand pressures of currency pairs. This goal can be achieved because it allows you to see how many people are willing to buy and sell at a given price. Using this information, sellers can adjust their purchases and profitable sales strategy._ _2. The limit order. It adds points to transactions that automatically stop an activity. It enables traders to control their spending or income on transactions. Many buyers and sellers (including myself) agree that limit orders are one of the most important orders. An important and useful tool for successful investment._ _3. Another way to gain profit is through the market orders. It allows traders to buy and sell assets in one place/at current prices without having to wait for further rises and falls. And not forgetting the OCO orders which helps traders to trade in volatile markets by combining two types of orders to generate profits and minimize losses._ _Also You can use the order book for technical analysis, such as support and resistance, to make a profit or avoid losses. Support points can be set in the order book according to the price range of the highest purchase order executed. It's time to buy and make a bunch of profit. In addition, the area where the maximum sell order can be placed can be used to establish resistance points and it is the best time to sell to avoid losses. Knowing all this can help you gain a lot of profit or minimize losses_ **CONCLUSION** _The order book is very useful for tracking purchases/sales in the cryptocurrency market (Spot market in Binance). Traders can use the information displayed in the order book to make decisions about entering/exiting transactions and allowing users to place various orders. Thank you very much @yousafharoonkhan, I really enjoyed your lecture._