I would love to break it down the way I understand it. I believe order means the arrangement of things in a specific sequence. Things could be anything. and a book is like space where information is recorded. So if I'm to define orderbook with respect to an exchange in my own way, I would say an order book is an electronic space designed for buy and sell order of assets at a different price level. I have an example for this

If you buy things online, you will discover some things while searching for different products. I've come across it several times on Jumia, and Aliexpress. You will see the same product with the same quality having different price tags. These products are owned by different merchants. There is an order book they all fill to list their products and it appears on the main interface of the site (Jumia, Aliexpress, and other related sites). They all fill the price they feel would be good for them to make a substantial profit. The exchange order book is similar. Different traders fill their prices on the same asset, which makes their prices different from the other

Where every merchant upload their products and fill their price is their dashboard, which can be classified as their account. Anything they input shows on the main site. So also, any price a trader fills in his own end too shows on the order book. Sometimes, there can be similarities in the price filled by different traders. It's because the order book is visible to everyone on the exchange so it's easy to see the lowest price and highest price which can be used to regulate your own price depending on how fast you want your asset/product to be sold, and how much profit you wish to get

From my explanation so far, I tried to break the order book down according to my simple understanding using the same electronic application. But how does the order book differs from our local market? I will use abatior where I buy meat as an example. At the cow market, there are hundreds of people selling meat and they are always in rows close to each other. One kilo of meat at Abubakar's stand might be different from how much you will get it from Nasir. John can tell you to pay $4 and you might get it at $3.5 from Diana. All these people are selling meat but at different price. If all the different prices are recorded by someone allotted to monitor the market, the record is an order book. This will include the different price uttered by the sellers and the amount the buyers are willing to get the meat

While I use an Abatior as a case study for market with respect to order book, trading pairs is the main thing traded on an exchange. So we can say Meat for market, TRX/BTC for Binance exchange. They both have their order book, but that of exchange is electronical, and more organized.

Question no 2 :

• Pairs
• Support and Resistance
• Limit Order
• market order

To find order book, we need to log into our exchange. Every cryptocurrency exchange have order book. I will use Binance as a case study. When you login to your account. You will see many features on the home page.

• Click on MARKET as shown in the image above. It will take you to another page where we have different pairs of cryptocurrencies. By default, it will display every assets on spot market. Here, you will need to chose which market you want to trade in. There are BNB MARKETS, BTC MARKETS, ALTS MARKETS, FIAT MARKETS, and so on.

• Click on the market you prefer to trade in, eg. BTC MARKETS

• Click on any pair you wish to trade. I clicked on BNB/BTC

• Incase you are looking for a particular coin that is not at the top, click the search button and type the name of the coin then click enter. The coin will be displayed. Once you see it, click on it. See the image below.

Don't forget I'm using BNB/BTC pairs.

• Clicking on this pair will display the order book.

Explaining words

pair :

This means when one asset is traded for another. For instance, when we say SBD/BTC, it means you can buy SBD with BTC, and at the same time sell SBD for BTC. We also have what we call base pair. Like in the case of SBD/BTC, BTC is regarded as the base pair. If we have BTC/USDT as a pair, the base pair is USDT.

Support and Resistance

The support and resistance is a strategy used in cryptocurrency trading to know when a coin is high in price or low in price. Or can I say it helps traders to know the entry and exit point in a particular trade.

Support

Resistance

Limit order

When we talk about a limit order, it specifies when to buy or sell an asset at a particular price. For instance, if I have a security to sell and the price is at let's say $4, and I want to sell for $7, I will input that amount, but the thing is this: It won't fill until there is someone willing to buy at that price. And that will be possible when the price of the asset ascends . Also, if I want to buy an asset of $6 at the rate of $5, it won't fill until the price of the asset comes down to that limit order I fill. So limit order gives the flexibility to place order at your own willing price.

Market order

Market order is just like when someone goes to the market to buy things and buy or sell at at the price given by the seller, or sell at the price the commodity is being sold at that particular point in time. Here, there is no time for pricing. The market price is the main price that the buyer buys or sell. In this case transaction is completed immediately without any delay. When you buy at the market price, you don't need to wait for some time before the asset fills. it's with immediate effect. It's not like the limit order where there is delay, and trader would have to wait till the time the order corresponds.

Question no 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)