Crypto Academy is a fantastic project by the Steemit team, and all crypto professors are doing fantastic job to educate the community about crypto and blockchain.
Today I attended one of the professor course and I learn about order book, so now I will be doing his homework task

Q 1. What is meant by order book and how crypto order book differs from our local market

The phrase "order book" is made up of two important words: Book and Order. A book is just a significant message that has been written or printed. A pre-notice of buy/sell of something by buyers and sellers is also referred to as an order. When we combine the two, we can simply state that an order book is one that contains records of buy/sell orders placed by buyers and sellers.

In the world of cryptocurrency, an order book is a book that contains the pairings of Crypto assets and their values, which have been set by the trader. This book preserves records of all the needed data on the asset pair they are buying/selling, its amount, and in what esteem they are buying/selling it; this esteem is offered through a transaction between the buyer and the seller of the asset because it can span various agreed values. This order book contains the buy and sell orders of all traders who have active trades in the market.

A good example is when we trade BTC with USD, if we perform BTC/USD trades in our exchange wallet, we always enter the quantity of BTC we wish to exchange for USD along with a rate, which is normally determined by the market price of these two assets. This order is held in the order book until a buyer at the same rate appears and accepts it.

Difference between cryptocurrency order book from our local market.

Our local market order books are very comparable to crypto exchange order books. There are, nevertheless, some notable difference between them. They are as follows:

Fluctuation: cryptocurrency price are not stable, there is always are volatility in the market, whereas in local market there is nothing like fluctuation the price are always fixed and stable.

24/7 access in cryptocurrency the trader can access the market anytime of the day unlike local market that there are time, for instance in my country some local market have a day that they usaully operates which are twice in week.

Transparency: all the transactions records in cryptocurrency are visible to both the the buyer and the seller, whereas in local market only the sell has the record of the transaction and it not even visible to anyone else.

Geographic Limitations cryptocurrency order operate all over the world, that is anyone from the part of the world can buy from someone else in another part of the world. Unlike local market that is just within the region.

Advance features There are numerous features in cryptocurrency like limit order, OCO, Stop-limit order, there is nothing like that in local market.

Q 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

It not difficult to find an order book on Binance Exchange.
I will show the step below

Step 1 Login to Binance and select"Market"

Step 2: Select "Spot" and search for the pair you want.. I'll be using BTC/USDT pair

Below is the screenshot of BTC/USDT trading pair order book on Binance Exchange

Trading pair

Trading pair referred to any two assets that can be exchanged for one another. This is mostly accomplished through the use of an exchange platform. Trading pairs make it simple to exchange one currency for another. For example, BTC/USDT is a trading pair that allows us to exchange BTC for USDT as well as USDT for BTC. Trading pairs can be created in two ways: first, from cryptocurrency to cryptocurrency (as in BTC/ETH), and second, from cryptocurrency to fiat (as in BTC/USDT) or vice versa.

Support

This is a technical indicator, it usual occur in the trading chart pattern of the asset.

The support is the point at which the price of an asset begin to rise immediately after going down.. this usually occurs during a downtrend (bearish).

Let me explain using the candle stick (Red and the Green).
When the chart is experiencing a red candle and when it reach a point it started experiencing a green candle that point is called Support

The screenshot above shows the support line of BTC/USDT trading pair on Binance.

You can see that the price of BTC started going down and the trader see this as the best point to buy and they started buying making the price to rise up.

Basically the support line is the best point to Buy

Resistance

This is also a technical indicator, usually seen in the trading chart of an asset.

Resistance represent the point where the price of an asset begin to drop immediately after rising it usually occur in a uptrend pattern (bullish).

Let me use the candle stick as example again.

When the chart is experiencing a Green candle and it started experiencing a red candle as a result of trader selling off their asset.
That point is called Resistance

The screenshot above shows the resistance point or BTC/USDT trading pair.

Looking at the above screenshoot the price of BTC was going up and it reach a point where it started coming down due to the fact that trader are selling of their assets.

So basically we can say resistance represent Sell point

Limit order

Limit order is a type of order that allow the trader to buy or sell his/her asset at the preferred price he/she wants.

For instance a trader want to buy BTC and the current price of BTC is $39,000 the trader can place a limit order to buy BTC at $38,000, then place a limit order to sell at $40,000 making a profit of $2000

Market Order

Market order is a type of order that allow the trader to buy or sell their asset at the current market price.
This type of order is usually fast and instant.

For instance a trader saw a news speculation about BTC and the price of BTC started dropping.
The trader can quickly place a market order to sell off his BTC instanly at the current price to avoid more loss.

Q 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).

Before I proceed further as requested by the professor, below is the screenshot of my verified Binance exchange.

Below is the screenshot of the order book of BTC/USDT trading pair on Binance

The features on the order book

Coin Pair

The coin pair is usually located at upper side of the page, for example the BTC/USDT coin pair.

That is the trader can buy BTC with USDT and sell BTC for USDT

Buy section (Bid)

The Buy section aslo know as Bid in an order book contain the list of all the buy orders that are waiting to be filled.
The buy section is usaully represent in green colour.

How to place a Buy order on order book of BTC/USDT pair on Binance

• Login to Binance at the order book of BTC/USDT trading pair click on "Buy"

• Enter the amount of the USDT and the amount of BTC you will get will be displayed automatically, you can also decide to use percentage of the USDT to place a buy order.
  Click on "Buy" to finalize the order

Sell section (Ask)

The sell section also know as Ask contain all the list of all the sell order in the order book that are waiting to be filled.
It is usually represented with red colour

How to place a Sell order

• Login to Binance at the order book of BTC/USDT trading pair click on "Sell"

• Enter the amount of the BTC you want to sell and the amount of USDT you will get will be displayed automatically, you can also decide to use percentage of the BTC in your wallet to place a sell order.
  Click on "Sell" to finalize the order

Q 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)

Stop-limit order

A stop limit order combines a stop loss and a limit order; traders use this order type to limit large losses while trading.

To make an order, a stop limit order uses two market prices.

• Stop price

• Limit price

Let me give an example

Let say John want to buy BTC with USDT using the stop limit order and BTC is currently trading at $36,664 and John want to buy @ $35,000 then he will set a Stop price at $35,000 and a limit price to $36,000

How to set Stop-limit Buy order

• Login to Binance app, still using the BTC/USDT order book.
  Click on "Buy"

• Click the drop down menu beside limit and select "Stop-limit"

• Enter the stop price and the limit price, the amount and click on "Buy BTC"

From the above screenshoot, John set stop price at $35,000 (BTC/USDT) and limit price at $36,000 (BTC/USDT) . Once price of BTC reaches stop price, John order will become limit order and will be executed at limit price.

How to set Stop-limit Sell order

John then want to sell his BTC after buying at $35,000 using the Stop-limit buy order.
To sell using the Stop-limit sell order John then need to set his stop price at $37,500 and the limit price at $38,000.

• Still on the BTC/USDT trading pair order book click on "Sell"

• Click on the drop-down menu and select "Stop-limit"

• Enter the stop price and the limit price, the amount and click on "Sell BTC"

From the above screenshoot, John set stop priceto sell BTC at $37,500 (BTC/USDT) and limit price at $38,000 (BTC/USDT) . Once price of BTC reaches stop price, John order will become limit order and will be executed at limit price.

OCO ORDERS

OCO is an abbreviation for 'One Cancels the Other.' This is the most complicated type of order, in my opinion. It's a mix of limit and stop-limit orders. If one of them is partially or completely fulfilled, the other is automatically cancelled.

John decided to use the OCO order to trade, that is John now has the opportunity of two orders that is a limit and a Stop-limit order.

If one of the order get filled the other one will be cancelled automatically by the system.
To place OCO order the trader need to consider the following;

• Limit price

• Stop-limit price

• Limit price for the Stop-limit

How to place a OCO buy order

John decided to place OCO order to buy BTC with USDT

• Login to Binance account in the BTC/USDT order book select"Buy"

• Click limit and a drop-down menu select"OCO"

• The current price of BTC in USDT is above 36,722 USDT and since John want to buy BTC at a lower price using OCO, on the Limit price, he will input a price that he want to use to trigger the buy order. He inputted 36,000 USDT. On the Stop limit price John inputted 36973. While on the limit Stop-limit he inputted 36,300 and enter the amount of BTC he want to buy which is 0.1 BTC and the amount of USDT was displayed.

How to place OCO sell order

After John has bought BTC using OCO order, then he want to sell using OCO sell order.

• Open Binance and click on "Sell" at the BTC/USDT order book

• Click limit and a drop-down menu select "OCO"

• The current price of BTC in USDT is above 36,750 USDT and since John want to sell BTC at a higher price using OCO, on the Limit price, he will input a price that he want to use to trigger the buy order. He inputted 37,100 USDT. On the Stop limit price John inputted 36,300. While on the limit Stop-limit he inputted 36,900 and enter the amount of BTC he want to sell which is 0.1 BTC and the amount of USDT he will received was displayed.

Q 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)

When it comes to trading, the order book can be a wonderful strategy for increasing profits or preventing large losses. Because the order book comprises a list of all buy and sell orders on the exchange, it can assist a trader in determining the market interest of a specific cryptocurrency, such as volume, demand and supply, in order to decide whether to buy or sell. If the sell orders are higher than the buy orders, something is wrong and there isn't much demand in the coin. If there are more sellers than buyers, there isn't much interest in a certain coin.

Another benefit of order book is that a trader can set a limit order to sell or buy asset at his/her own preferred price.

Using the market order book, a trader can decide to buy or sell at the current market price due to some speculation, also the OCO order allow the trader to create two orders (limit order and Stop-limit order)at the same time and when one is fulfilled the other one will be cancelled automatically by the system.

Technically a trader can use the support and resistance line in the order book to determine the whether to buy or sell an asset. Considering the volume of the asset, to determine when to buy or sell the asset,

Looking at the technical indicators available on the order book like MA, BOLL, RSI, EMA, KDJ, VOL and MACD the trader can make use of this to make a successful trade.

Conclusion

Order book is very important in cryptocurrency trading as it helps the trader to know the price a seller want to sell a particular asset and also the price a buyer want to buy a particular asset.

Some other information like the volume also allow the trader to make some technical analysis before he/she proceed to trade his/her asset.

It a great pleasure to learn under professor @yousafharoonkhan