How do you use this information to make a buying or selling decision?
#تحليل The market
Buy and sell
#معرفة Sales and purchase areas based on requests
On Binance, the Order Book is where all open buy and sell orders for a particular cryptocurrency pair are displayed. These orders are entered by traders, and you can see the prices at which buyers and sellers are willing to trade.
Explanation of the components of the order list on Binance:
1. Bid Orders:
In the Bid column, you will find the prices that buyers are offering to buy the cryptocurrency.
Orders in this column are displayed at prices below (or close to) the current price because buyers are usually trying to buy the currency at a low price.
Orders are displayed from top to bottom with the highest price at the top (highest bid to buy).
The most commonly used color is green.
2. Ask Orders:
In the Ask column, you will find the prices that sellers are offering to sell the cryptocurrency.
Orders in this column are displayed at prices above (or close to) the current price because sellers usually want to sell the currency at the highest possible price.
Orders are displayed from top to bottom with the lowest price at the top (lowest bid to sell).
The most commonly used color is red.
3. Quantity:
Next to each price in the order list, you will find the quantity offered for sale or purchase.
Quantity is the number of units offered for sale or purchase at that price.
For example, if there are 10 Bitcoins for sale at $30,000, the quantity will appear as 10 next to the price 30,000.
4. Depth Chart:
Besides the order list, you can also see the Depth Chart which visually represents the balance or buying and selling pressure.
This chart shows order volumes on the vertical axis, with prices on the horizontal axis.
The green color in the chart represents the order volumes for buying, and the red color represents the order volumes for selling.
5. Price:
The price is the price displayed in the order list, and shows you the price that is currently being traded or that you wish to trade.
If you place a Limit order to buy or sell, you can specify the price at which you want to buy or sell the currency.
How to read the order list:
Buy Pressure:
If the quantities in the Bid column are greater than the quantities in the Ask column, this indicates buying pressure. This means that there are a large number of buyers trying to buy, which may push the price higher.
Sell Pressure:
If the volumes in the Ask column are greater than the volumes in the Bid column, this indicates selling pressure. This means that there are a large number of sellers offering the currency for sale, which may push the price down.
The price at which the deal will be completed:
If there is a match between the buy and sell orders, the trade will be executed at the price agreed upon by both parties (or the closest price).
Practical example:
Let's say there are orders in the order book for the BTC/USDT pair on Binance:
On the left side (buy):
1 BTC is worth $30,000
2 BTC at $29,900
3 BTC at $29,800
On the right side (sell):
1 BTC is worth $30,100
2 BTC at $30,200
3 BTC at $30,300
analysis:
If you want to buy BTC, you can choose the price that suits you from the left side (buy) or you can place a buy order with a specified price.
If you want to sell BTC, you will go to the right side (sell) and place a sell order at a price you agree with.
Types of Orders:
On Binance, you can place several types of orders:
Limit Order: Set a specific price to buy or sell.
Market Order: Execute the trade at the current market price.
Stop-Limit Order: Placing an order at a specific price after a certain level is reached.
OCO Order: Combine Stop-Limit order with Limit order.
summary:
The order list shows all open orders for a particular currency pair.
Quantities are shown next to prices.
Order list analysis helps you notice the market trend (buying or selling pressure).
You can use this data to make appropriate trading decisions according to the pressure in the market.
Need more details on how to use this data in your strategies?
