Good afternoon respected professor @yousafharoonkhan , Thank you for such a useful content of your class, I present you my homework.

Question # 1

What is meant by order book and how crypto order book differs from our local market. explain with examples (answer must be written in own words, copy paste or from other source copy will be not accepted)

The order book, is a list where we can observe the record of buying and selling that is in the trade, we can also see the price offered by sellers and buyers to be able to make the decision to make a purchase or sale transaction. There are 2 types of order books, the local market order book and the cryptographic order book.

Crypto order books are mainly characterized by the exchange between pairs of assets, i.e. one cryptocurrency is exchanged for another. We can mention a couple of examples to make this exchange understandable: (BTC/BTT). Also by a cryptocurrency for cryptocurrency that is known as USDT, Example (BTC/USDT).

This exchange is achieved through buy orders and sell orders, We can buy BTT with BTC or sell BTC to get BTT, these buy or sell orders are the ones that are recorded in the ledger.

The differences that exist between an Order Book of a local market and a Cryptocurrency one are the following.

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Question # 2

Image

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Limit Order

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Market Order

It is the buy or sell order whose price matches the current market, therefore this order is executed immediately. Example: if the market price is at 0.0035526 USDT, by issuing the sell order, as the example in the picture below, this sell order will be filled instantly.

Fuente Okex

Question# 3

Explain the important feature 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)

First, as the assignment indicates, I will show the verified profile of my account:

Fuente Okex

Now in order to mention the features of the order book, I will show you an overview, after logging into my Okex wallet and choosing the BTT/USDT pair.

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Within the order book we find the records of the buy and sell orders of the different users, their price in USDT and the amount of Cryptocurrencies they offer to sell or buy.

Fuente Okex

We also have the buy panel where the assets exchanges are made, these have different options to make the purchases, the user chooses the most convenient at the time of placing the order. We will use the following screenshot as an example of a buy order. It is characterized by its green color

for this example I used a buy at market price

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For the sale we have the red panel, where you can choose the option of sale at the user's convenience, after making the decision to sell taking into account the market price as a reference and set the price, the sale is made and will be completed according to the type of sales order chosen.

To make a sale we only need to select "sell".

Fuente Okex

The Purchase and Sale Order options offered by the platform are as follows: Limit Order, Market Order, Stop-Limit and OCO.

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Question # 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

The stop-limit order is an option that allows you to set the price at which a buy or sell order can be executed, which is known as a "stop order" and the price at which you wish to buy or sell, also called a "limit order".

Sell Order, (Stop-Limit):

To place a sell order, first select the pair I am going to work with (BTT,USDT).
Then we select the option "Stop" in the "sell" field, the options appear: Trigger Price, Price and Amount.

Trigger Price: This is where we will place our price where we want to activate the sell order, for this to happen it is necessary that the market price reaches that price, taking into account that the price must be above the market price. For the purpose of this example the market price is 0.034971 USDT. So I want my activation price to be when the market price reaches 0.0355 USDT.

In the Price box, we will place the limit price, that is, the price at which we want to sell and I want to sell when after the sell order is activated, the market price reaches 0.036 USDT.

For this task I will place the order with 100% of my BTT to exchange for USDT and then select "Sell" to complete the order.

Fuente Okex

Buy Order (Stop-Limit)

To place a buy order with Stop-Limit, I choose my pair for the exchange, (BTT/USDT), then we select the "Stop" option in the "sell" field, and again we see the options: Trigger Price, Price and Amount.

In Trigger Price, as we saw before is where we will place the price to activate the buy order, but for this occasion, it must be below the market price, which for this order was at 0.0034351 USDT, . So I want my activation price to be when the market price reaches 0.0315 USDT.

In the Price box, we will place the limit price, that is, the price at which I want to buy, after the purchase order is activated, I want it to be placed when the market price reaches 0.0310 USDT.

Fuente Okex

Order of Purchase and Sales with OCO

First of all we must know that OCO means "One Cancels the Other", this means that we can make 2 orders simultaneously, where when one is activated, when the market price reaches the activation price of one of the 2 orders, the other one is automatically cancelled. This is definitely a fabulous tool.

In the case of Purchases the TP Activation Price is lower than the market price and the SL Activation Price is higher than the market price, making a range of probability of profit or minimum loss.

In the case of Sales it is the other way around, the Activation Price is higher than the market price to opt for profit while the SL Activation Price is lower than the market price.

Wonderful isn't it? Now let's see examples with screenshot.

Buy Order with OCO

I am still working with the BTT/USDT pair.

For the purpose of buying in OCO, taking into account the current market price of 0.0034089 USDT, I set my TP trigger price (0.0031 USDT) to execute the purchase at my limit price (0.0030 USDT). To avoid losses, I activate my SL at position 0.00349 USDT and my limit at 0.0035 USDT.

In my case I use 100% of my USDT to buy BTT I confirm the trade and that's it. Completed the buy order.

Fuente Okex

Fuente Okex

Sell Order with OCO

For the purpose of selling in OCO, taking into account the current market price of 0.0034288 USDT, I set my TP trigger price (0.00420 USDT) to execute the sale at my limit price (0.0025 USDT). Then, I activate my SL at position 0.00290 USDT and my limit at 0.00285 USDT.

To make it different, I place the order with 50% of my BTT and trade for USDT, select "Sell", confirm the trade and that's it. Completed the sell order.

Fuente Okex

Fuente Okex

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)

For trading to protect yourself from losses during your cryptocurrency buying and selling you should use the order book which presents many options for trading such as limit order, market order, stop limit order and OCO. The knowledge of these orders allows you to profit in the market and minimize your losses in the short, medium or long term. These orders of the order book give us confidence at the time of the investment, due to its operation, so with the limit order you can set a price that will be executed automatically when the market price reaches the set amount and thus profit will be obtained.

With the order book we can know what the market trend is at the moment we want to buy or sell. This allows us to see all the details of buy orders and sell orders and we can estimate at what price the buying and selling trend is being executed and helps us to protect the assets from losses that could be generated, that is, it would help us to make profit.
It was investigated on support and resistance in the order book and it is observed that once we know all the buy and sell orders and amount of prices we can decide where to place the support level and be able to make purchase of assets at low prices and then sell with profits because the support level tells you the minimum level that the asset can reach, while at the resistance level you can sell cryptoassets and make profits , because the resistance level indicates the maximum point that the cryptoasset reaches.

It is also worth mentioning technical indicators such as: MA, BOLL, TRIX, VOI and KDI, they help to make profits, which is what we all want, and save losses.

For trading it is also very important to use the OCO (One Order Cancels the Other). The OCO works with a group of orders linked together, and allows better management of this group of orders. It is used to minimize the risk of loss and optimize profits.

Conclusions

• The order book helps to optimize profits in cryptocurrency investment.

• OCO allows you to manage orders when you have a group of them.

• Trading benefits from the order book. It offers orders and technical indicators that help your profits.