Understanding the CryptoCurrency Trade Room, To Trade Like a Pro.
To trade CryptoCurrency efficiently you have to master how to use the trade room,
1. what the chart is saying, know
2. What the order book is saying
3. Know the order types they're, what they do, how to use them and why.
I know this can be quite overwhelming for new commerce into this space.
so in this article am going to hold you by the hand and work you thought step by step on how to read the order books, and show you how you can able to differentiate between the order types, What they do, why they do what they do and How to use them,
there Two types of people in the trade Room
The Makers and The Takers
The Prince order book Look like this
but let me show you a simplify version
So this is a JUDE Coin Against the USDT order book, The first column is the price and the second column is the amount.
Does in red are the sellers while does in green are the buyers.
The important thing to notice about the order book is that the price for sellers increases upward, while the price for the buys decreases downward.
Now let's look at the order types on binance.
Let's explain them one by one
The limit is used to buy and sell at your preferred price, but these are only executed if the market requirements and market pricing are made.
example of this, is when you conduct an analysis and you find out that, this coin you are holding, which is priced at $100, your analysis is indicating if this coin gets to the price of $105 the chances of the price hitting $110 is quite high.
so you can use this order in this way,
-Current price $100
-if the price reaches $105
-My coin should be sale at $110
with this setup your coin sale order at 110 will be activated immediately the value of the coin gets to $105.
The same principle goes, if you buy the coin using the Stop Limit order. (Buy)
Now let's look at the oco order, the oco means one cancel the order order one cancel the other order so this is used as a combination of the (Limit Order Type) and the (Stop Limit Order Type) Now let us look at how we can use it.
Let's assume we have this bitcoin Cash coin at 100 that is the price it is and I went and did my technical analysis and I found out that it's likely to fall back to 95 then rise from there.
that could happen or if that doesn't happen he's going to but if that doesn't happen and it keeps on rising if he gets to one or two dollars it's going to keep rising.
so what I would do is I'll place an oco order one to buy at 95 or that is limit order now buy at 95 dollars or stop limits order to buy at 102 whichever one happens first if the coin do not fall to 95 dollars but just keep rising my coin will be bought at $102 dollars
And the $195 dollars is going to cancel right, but if the coin did not rise and falls to 95 dollars and it's bought at 95 dollars the order I placed At $102 it is going to be cancelled.
This combination of the two orders is what is called the oco order. I can place this order and go and sleep.
Then the oco sell is the same thing I have the coin I want to sell I did my analysis I found out that it is likely to fall tonight's eight dollars or rise to 105 dollars so what I place my orders one that if I already have the coin, then if it gets to $105 dollars I sell it, but if it drops to $95 dollars I sell it and buy it whenever it reach the bottom of that chart so these are the type order type we have on binance.
If you got any value or have any question let me know in the comment section below.
If you got any value or have any questions, let me know in the comment section below.