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![Photo_1622130491340.png](https://cdn.steemitimages.com/DQmWBJbHBEsDh5tKKNdHMvKjkYn2BH9bt2QwwPJEGR17pNm/Photo_1622130491340.png)

*Hello steemians how are you? All you all fine. I hope you all are doing great in this pandemic time and you all are safe and healthy. 
So today I just gone through Professor @yousafharoonkhan new lecture on order book and I found it quite interesting and research based homwork. So now after reading assignment its time to submit the homwork post.*


# HOMEWORK POST

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmSrA5Mudvfz2JKyfk7c5Xf96zLmNpoFFxc7N1C4ieFPRE/image.png
### Question 1 :
What do you meant by order book and how crypto order book different from local market. Explain it in your own words.

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmPNftLA64k9MJx1PuvCfui2EW4cCLqdMWJb53BrbRURjg/image.png

### Answer :

Order Book : the data of buying and selling order that are gathered or collected together at one place like a diary, book for digital note are known as order book.
In the order book one can see the buying and selling rates in last few transactions.

If you want to understand this then we have to take an example from our daily life.
As per the professor example we are taking another example. Occasionally we buy clothes let us consider in a market there are five shops. I rent in shop one and bargain to my margin price that I have decided but he refused my proposal so I leave that shop. Same happen in shop number 3 ,4 and 5. But shop number 2 to the seller accept my proposal and sell clothes to me. So let us see what are the prices get in our order book in local market .
Shop number | price of saree 
---|---
Shop 1 | $10
Shop 2 | $7
Shop 3 | $14
Shop 4 | $19
Shop 5 | $13
For the same cloth we are getting five different prices.

In buyer perspective shop 2 is best for buying clothes whereas in sellar perspective shop 5 will gain more profit. 

From this example we can understand that customer that is me, want to buy order on my own price. So for that I will prefer order book. 

#### Features of order book :

* Collective data gathered on one platform.
* User have multiple choices of selection.

### Crypto order book :
Digital order book that have crypto pairs in one platform where user can choose its own price is a crypto order book. In crypto order books every pair have its own buying and selling details from one cryptocurrency to another cryptocurrency.
For example Binanace is an exchange which consists of order books for different pairs.

The basic definition of crypto order book is data collection of buying and selling of a crypto pair from one cryptocurrency to other cryptocurrency.

### Features of crypto order book :
* Provide multiple pairs which one can buy and sell asset by checking order book.
* Provide multiple option to analysis and select own price.

### Difference between local order book and crypto order book :

Local order book | Crypto order book 
---|---
In local order book we can see hand-to-hand order completion and transaction | in Crypto order book we can see slow transaction take 10 to 15 minutes to complete order .
Buyer  need to bargain a lot to reach its marginal price. | Buyer don't need to bargain but can set order anyone interested trader can purchase it easily
In local market we are considered as a buyer |  In Crypto market we are the sellers who need more price of our asset.
In local market physical work is required | in Crypto market digital work is required .
In local market no order book is updated | in Crypto market every book is updated.
In local market we have less choices | In Crypto market trader has many choices.

These are the differences between the local market order book and the Crypto market order book.

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmSrA5Mudvfz2JKyfk7c5Xf96zLmNpoFFxc7N1C4ieFPRE/image.png

### Question 2 :
Explain how to find order book in any exchange through screenshot and also describe every step with text. Explain the words given below :
* Pairs
* Support And Resistance
* Market order
* Limit order

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### Answer :
Find order book I am using winans exchange because I have a verified account on it.

![IMG_20210526_025605.jpg](https://cdn.steemitimages.com/DQmdC15UmqcRN74o8PHguvofMHe3VvSagvTNGBFqzfXQw3N/IMG_20210526_025605.jpg)

Follow the steps given below to find order book in a particular cryptocurrency pair  :-

* Open Binance Exchange and click on market section given below on task bar.

![IMG_20210526_025219.jpg](https://cdn.steemitimages.com/DQmdekmASnmXMgictfCs48DNmVRfjnWm52NGUEzjt6NBJ6h/IMG_20210526_025219.jpg)

* Now there are three options spot, futures zones. Click on zones.

![IMG_20210526_025125.jpg](https://cdn.steemitimages.com/DQmZLBLvSVj6EdLd76KPKnpTSgMAAmDXmMt4vx1tKuhxNqj/IMG_20210526_025125.jpg)

* In zones click option coin full stop you can see list of coin with price 24 hour high and low market capitalisation and volume. You can search your pair in search bar given on the top.

![IMG_20210526_030032.jpg](https://cdn.steemitimages.com/DQmPgr2AmGZuQpGNSz8R9LPiJna8MEr3cEakQCsyFCCQTuB/IMG_20210526_030032.jpg)

![IMG_20210526_025525.jpg](https://cdn.steemitimages.com/DQmRcDAimVRTLfjWnMTnXft31zYXKA98nxSCfAmS5LGvcqX/IMG_20210526_025525.jpg)

* I am going to search XRPUSDT full stop you can see the price trend of XRPUSDT after searching. Scroll down below the price Trend where you can find the order book.

![IMG_20210526_025950.jpg](https://cdn.steemitimages.com/DQmSQLdeiQP4mohmmTiTrrPtMzoXS5MR7JXnDqwL292EmJt/IMG_20210526_025950.jpg)

![IMG_20210526_025359.jpg](https://cdn.steemitimages.com/DQmXBUu45Dkk9B6b5CcZsMWMFULwHnvAUghYDYbo6pJ7kN1/IMG_20210526_025359.jpg)

* Now you can see the order book where you can see the buying and the selling prices given below.

![IMG_20210526_025837.jpg](https://cdn.steemitimages.com/DQmSSBYncgcXWU87gXHyhhdGfVbHSq6ZHqsDpLKV3SwL1xf/IMG_20210526_025837.jpg)

* This is the process to visit the order book of a pair. You can try it on your own by using another pair too.

Now let us explain these important words :
 ### Pairs :
When we trade in an exchange we can see trading from one cryptocurrency to another. It means you will get one cryptocurrency in return after selling your cryptocurrency.
This is known as pair.

![IMG_20210527_114619.jpg](https://cdn.steemitimages.com/DQmUZBp7Mk2kY9NhYPgCmojg6ou8MErnfGXGW2bdxf1ra4D/IMG_20210527_114619.jpg)

In the world of currency there are two different pairs one is cryptocurrency pair and other is fait currency pair. 
For example : XRP/USDT is a cryptocurrency pair and 
INR/USD is a fait(native) currency pair.

### Support and Resistance :
 * Support :
It is a line from which price of an asset bounce back and move uptrend . Support level is used to make a buy asset position . if an asset breakdown support then that time user short sell their asset as they know that they can buy this asset again at less price and make a good profit because after breaking support line price will definitely move down Trend.

![IMG_20210527_114928.jpg](https://cdn.steemitimages.com/DQmSaXz9w38zaRJQt8esRsSuJNty99rZnhhC6khLk34JF9h/IMG_20210527_114928.jpg)

Given above is an example of support line where you can see that price is bouncing back and moving up Trend.

* Resistance :
It is the line from which price of an asset bounce back and move downward. Resistance level is used to make cell position full stop if an acid break down resistance then at that time user hold for getting more high price of his or her asset as they know breaking resistance line I will move the price upward for a long time.

![IMG_20210527_114820.jpg](https://cdn.steemitimages.com/DQmXKEzy9swLfqerZPn3Pn8mDqLmufTtbbZV8R5aGDUwYax/IMG_20210527_114820.jpg)

Given above is the resistance line from which we can see price is bouncing back many times and moving downward.

### Limit order :
Process through which user set the limit according to their price full stop when price meet user value they enter buy or sell its asset to earn profit rather than facing financial loss.

![IMG_20210527_114737.jpg](https://cdn.steemitimages.com/DQmNsPL4wGcTCKYFZETm2YPzvouc3UfgUHtkk3tjgugXrxL/IMG_20210527_114737.jpg)

As you can see in the above figure we have a position for limit order and here you can type your limit and place the order. When  the price reach at that point order I will simply completed.

### Market order :
The process in which user buy and sell asset at market price whether the market is upward or downward this is known as market order. Maximum time at emergency situations user take this move.

![IMG_20210527_115233.jpg](https://cdn.steemitimages.com/DQmUaPth8UAypYeZoprDhL6StaEUi3VNcdkgThosGBdmj6U/IMG_20210527_115233.jpg)

In the above figure you can see the market price of the given pair . Maybe a trader sell his or her asset at this price.

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmSrA5Mudvfz2JKyfk7c5Xf96zLmNpoFFxc7N1C4ieFPRE/image.png

### Question 3 :
Explain the important features of order book with the help of screenshot full stop in the meantime a screenshot of your exchange account verified profile should be appear. 

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmPNftLA64k9MJx1PuvCfui2EW4cCLqdMWJb53BrbRURjg/image.png

### Answer :
The main features of order book are:
* Order book show buy and sell prices in real time as it is constantly updating its data.

* It helped market participants to understand market Trend and over time situations to get the perfect entry and exit point in the market.

* It provide as different indicators to make a call whether to buy or sell an asset. Today let us discuss three of them:
   * MACD
   * RSI
   * VOLUME (VOL)

#### RSI :

![IMG_20210527_121840.jpg](https://cdn.steemitimages.com/DQmaqYNLyWtVbcCqHjJMEM5iwffpun6K5JUam3npviypQ2z/IMG_20210527_121840.jpg)

Relative strength index is a momentum oscillator which is used to analyse price movement and also check buy and sell condition of a price chart. 
Investors or traders use this to check the stock or cryptocurrency whether it is over brought (overvalued) or oversold (low price but has potential to gain).
As in the last sentence we have discussed two words overbought and oversold. So let us understand both of them one by one.

Overbrought | Oversold
---|---
when demand of certain stock increase and exceed supply the price increase high or over valued. This type of situation can be determined by checking RSI value . If rsi value is in between 70 to 100 the stock is overbought and this situation creates Bull market. |when demand of certain stock decrease and supply increase then the price of that decrease significantly. This situation can be determined by checking the RSI value.IF rsi Value is in between 30 To 0 the stock is oversold.
This type of situation occur in bullish market | this type of situation occur in bearish market.
![IMG_20210527_121944.jpg](https://cdn.steemitimages.com/DQmQrUacuWE2x7F6tKTDMihPoLeNH8qZ9k1FQfoAD9tQ9ng/IMG_20210527_121944.jpg) | ![IMG_20210527_122032.jpg](https://cdn.steemitimages.com/DQmQEsQDYXS654BKzt6dRmKhNZZjuu4Krx3eniSDgEdzTFv/IMG_20210527_122032.jpg)

#### MACD :

![IMG_20210527_122410.jpg](https://cdn.steemitimages.com/DQmXo8RoJX3YUFEEjx9NK4uf5Hu7vTpFmwWDReU6hBzrLfR/IMG_20210527_122410.jpg)

Moving average convergence divergence also known as MACD is a technical indicator used to measure potential exit entry points, strength of a trend and also analyse phase reversal in a crypto market. Gerald Appel was the creator of the most accurate indicator in 1970s. it consists of histogram zeroline moving average line and signal line .
The three main features of moving average convergence divergence is :

* Bullish crossover : 

![IMG_20210527_122432.jpg](https://cdn.steemitimages.com/DQmZqDgtU39ikP7XotUkC5HxqBaGkJA2VYcmNFvQ7VTARWy/IMG_20210527_122432.jpg)

When MACD line crosses signal line and move upward and also above the signal line then it is a sign of bullish cross over that means the market will show an uptrend.

* Bearish crossover :

![IMG_20210527_122453.jpg](https://cdn.steemitimages.com/DQmZjcKmNQBU1oQ7qC96BUkVxhq2YDsD21r34Uj99o95C1t/IMG_20210527_122453.jpg)

When MACD line crosses signal line and move downward and also below signal line then it is a sign of bearish cross over that means the market will show reversals Trend.

* Zero crossover :
When MACD line crosses zero line and move upward then it is is a phase of uptrend and a buy position for a trader. But if MACD line crosses zero line and move downward then it is a face of downtrend and a sell position for a trader.

#### Volume (VOL) :

![IMG_20210527_122824.jpg](https://cdn.steemitimages.com/DQmTTspQ1MKFpvBEfnYk12gpoE9k65Q7eqtrdnHN87Fqet4/IMG_20210527_122824.jpg)

It tell us about the price rise and price fall of an asset.
It consists of two different colour bars that is a green bar and red bar.

* Green :

![IMG_20210527_122755.jpg](https://cdn.steemitimages.com/DQmdNvJHk4DU2n2FP2L3Uvu6CqCFLXF5JgmXJM376KPN3KH/IMG_20210527_122755.jpg)

 the green colour show the price is moving up Trend and also it is an entry point for a trader.

* Red : 

![IMG_20210527_122719.jpg](https://cdn.steemitimages.com/DQmcmkCDozigE1uJgHvJuPqnhnvbmEtu8RPMaX1ZGVTyZks/IMG_20210527_122719.jpg)

red colour shoes the price is moving now down Trend and it is an exit point of the trader.


![JvFFVmatwWHRfvmtd53nmEJ94xpKydwmbSC5H5svBACH81T7s3pxebenP9Pyo4KsU2ymzHDEhuS9dmEu4fRJrP4pPn7bYfw2Wuk1BZSgYTM6Lb5bWCXm4Vke7Zen78HxNFn9NDDXDx.jpeg](https://cdn.steemitimages.com/DQmV73EtXYhiSSF222xmcmrvYGuGpNugMx9uTZurMk4AGSf/JvFFVmatwWHRfvmtd53nmEJ94xpKydwmbSC5H5svBACH81T7s3pxebenP9Pyo4KsU2ymzHDEhuS9dmEu4fRJrP4pPn7bYfw2Wuk1BZSgYTM6Lb5bWCXm4Vke7Zen78HxNFn9NDDXDx.jpeg)

These are the features of order book that come into my radar of research. I want to make one thing very clear that all these screenshot ask from my binance exchange which is a verified exchange.

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmSrA5Mudvfz2JKyfk7c5Xf96zLmNpoFFxc7N1C4ieFPRE/image.png

### Question 4 : 
How to place buy and sell order in stop limit trade and OCO ? Explain through screenshot with verified account.

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmPNftLA64k9MJx1PuvCfui2EW4cCLqdMWJb53BrbRURjg/image.png

### Answer :
To buy and sell order in stop limit trade in binance Exchange is easy process . Let us first discuss about stop limit :
#### Stop-limit :-
It is a point that a trader choose at where they enter the market or I can say point of buying and selling and asset.

### Buying and selling using stop limit :-
* Go to Binance exchange and click on the market option.

![IMG_20210527_140959.jpg](https://cdn.steemitimages.com/DQmY2a1SxhGmaWh6FovemawTvcyBr1YAKnA9kj7RMc1qe2y/IMG_20210527_140959.jpg)

* Search the asset you want to buy or sell in the search taskbar. I am here showing my working on XRPUSDT.

![IMG_20210527_141417.jpg](https://cdn.steemitimages.com/DQmYsACBn2yvvfmSned3WnJ5HhuzoTVXi1MXAeZLR9bnnWi/IMG_20210527_141417.jpg)

* Scroll down you can see the order book and below the order book you can see buy and sell option click on any one option you want to perform.

![IMG_20210527_141354.jpg](https://cdn.steemitimages.com/DQmZGuLo9TzWHZECzyfijSHTTmABFtKRNEmq8NpgvtiVW2f/IMG_20210527_141354.jpg)

* Let us click on the buy option first you can see an option written as limit change that limit to stop limit as shown in the screenshot below.

![IMG_20210527_141237.jpg](https://cdn.steemitimages.com/DQmavnDbzKgRJJiFDzfUSV975H7NNWB1qhdySQHnhz1cTCL/IMG_20210527_141237.jpg)

  
![IMG_20210527_141045.jpg](https://cdn.steemitimages.com/DQmVK8sV5pW76KFVxygs3XZkT1QwDs94sh1tdrfiteyqCpX/IMG_20210527_141045.jpg)

 * stop(USDT) WILL SHOW THE ENTRY POINT OF THE MARKET.
  * Amount will show the number of asset that I want to collect.
  * Price will show at what rate I want to buy the asset.

* For selling option change the buying option to selling option and fill the required details for stop limit as same as in buying option. 

![IMG_20210527_141159.jpg](https://cdn.steemitimages.com/DQmfHt6XqAGnozLLfxYRMPiXDmPg3TWXeCQgT1nZ43gnngu/IMG_20210527_141159.jpg)

![IMG_20210527_141132.jpg](https://cdn.steemitimages.com/DQmR1zRs6RqzaWAtxp6bdP9bGssg726CGbYvXmFnPPtm9xe/IMG_20210527_141132.jpg)

These are the process to follow in stop limit using binanace exchange.

#### buying and selling process in OCO :-
* Again go to Binance exchange and click on the market option given below on the taskbar.

![IMG_20210527_140959.jpg](https://cdn.steemitimages.com/DQmY2a1SxhGmaWh6FovemawTvcyBr1YAKnA9kj7RMc1qe2y/IMG_20210527_140959.jpg)

* Select your choice of para you want to trade again I am choosing the same pair XRPUSDT.

![IMG_20210527_141417.jpg](https://cdn.steemitimages.com/DQmYsACBn2yvvfmSned3WnJ5HhuzoTVXi1MXAeZLR9bnnWi/IMG_20210527_141417.jpg)

* Click on the buying and selling option below the order book ok you will reach to the page where you have to fulfill the details and complete the order.

![IMG_20210527_141354.jpg](https://cdn.steemitimages.com/DQmZGuLo9TzWHZECzyfijSHTTmABFtKRNEmq8NpgvtiVW2f/IMG_20210527_141354.jpg)

* You can see buying option over there change limit to OCO option and then fill the details required to complete the buying process.

![IMG_20210527_141936.jpg](https://cdn.steemitimages.com/DQmcWkjKtW55phDPiUNU76MS69Tm3WHyxzG8dLzYuiAUej7/IMG_20210527_141936.jpg)

![IMG_20210527_142022.jpg](https://cdn.steemitimages.com/DQmeN7NkXsqD4EUqmwP1ANZFJUJ2GEwRxarUCMZhFbf94iS/IMG_20210527_142022.jpg)

* And if you want to sell the asset then simply changed the buying address to selling address and follow the same process as given in the screenshot below.


![IMG_20210527_142104.jpg](https://cdn.steemitimages.com/DQmPgSJNyaH1itTgGuhc4j2nM41iSHBLEX65dzVMpPb8JkC/IMG_20210527_142104.jpg)

![IMG_20210527_142146.jpg](https://cdn.steemitimages.com/DQmZYo5qPnWCji9QwKZqehfBJxob8qrFR2QUopCjjj8DXhw/IMG_20210527_142146.jpg)

One-cancels-the-other (OCO) it is a type of conditional order for which pair of orders in which the execution of one automatically cancels the other. 

This is how we have to buy and sell in stop limit and OCO.

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmSrA5Mudvfz2JKyfk7c5Xf96zLmNpoFFxc7N1C4ieFPRE/image.png

### 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).

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmPNftLA64k9MJx1PuvCfui2EW4cCLqdMWJb53BrbRURjg/image.png

### Answer :
Order book help in trading to gain profit and protect us from loss in many ways let us discuss three main technical ways in which it help us:
* #### real time data of buying and selling :
As it is constantly updating by buying and selling data of cryptocurrency that can be easily seen, which help me to take decision and enter the market at lower price and exit at higher price after gaining a profit without suffering a loss.

* #### resistance and support :
It is easy to set resistance and support by checking the order book and the price chart. Support level will give support to our price and bounce it to upgrade and resistance will show maximum growth. It is very much useful for a trader to enter the market and exit the higher point market. Trader also use support for short sell by checking the order book and the support line to gain profit.

* #### Entry and exit point :
Using different indicators one can make a perfect entry and exit point. For me getting most perfect entry-point I always prefer moving average convergence divergence as it is most accurate and highly trustable full stop you can simply check indicators and then order book to make perfect entry in the market. 


So in my thoughts these are the three main technical views of order book to make perfect entry and gain profit without suffering a huge loss or a small loss.

https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmSrA5Mudvfz2JKyfk7c5Xf96zLmNpoFFxc7N1C4ieFPRE/image.png

### Conclusion :

So finally we are concluding our homework. In this we learn about order book in a local market and in a cryptocurrency market. Where we can see easily that digital cryptocurrency market is constantly updating while the other local market it is a very  difficult type of work. In the second part we discuss how to check the order book which we have seen in binance exchange and also discuss about pair resistance and support limit order and market order. After that we discuss how to buy and sell using stop limit and OCO. In which we can see the steps very much clearly and finally we discuss the technical views of order book. So this is my concluding statement for this homework thank you so much professor for providing a Such a research based homework. We learnt a lot . 
https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmPNftLA64k9MJx1PuvCfui2EW4cCLqdMWJb53BrbRURjg/image.png

**Note : 
All the above screenshots are taken from Binanace exchange verified on my number.**

# Thankyou so much

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