Ultimate Orderbook Crypto Trading Technique – Safest Strategy? 2021

Hi I am Vlad and in thisepisode we will be talking about orderbook cryptocurrency trading technique. Orderbook is a very important conceptin trading, both crypto and inventory. There are different types oforders which you can have on exchange pulpit sell degrees and open tells. With a market order youre buying an asset forits current market price. This degree never goes into the orderbook. If you arrange an open seek, youre telling the platform that youd like to buy or sell when the cost pops a specificlevel. This dictate does go into the orderbook. Different exchanges havedifferent orderbook forms or schemes but they all have the same purpose. Orderbook is a visual representation of real-timeorders for a specific instrument on the exchange youre using.Orderbook includes all ordersthat are available on the exchange for trading. Now, you would be able to see orderswhich people placed on the exchange. And you would be able to fulfill one or someof these requires or neighbourhood your own order. Orderbook assists sellers with read the market. It improves grocery transparencyby providing valuable message. Orderbook typically is a matter of: buyorders, sell degrees and dictate biography. You got to find orderbook on literally anyexchange for any time or financing instruments, such as cryptocurrencies, inventories, currencies, ligaments, etc. It exposes the data of all open successions, including manual tells and electronic ones. In this video, we will be talkingabout cryptocurrency with orderbooks. Gives talk about how to read orderbook.Both line-ups of orderbook expose different information. It shows the amount andprice per say with total legions of the cryptocurrency youre looking to trade aswell as the toll each unit is valued at. Each Oderbook depicts: amount, priceand total, however, as I « ve said », different exchanges use different layoutsor forms of orderbooks.For example, the amount can be called size, total can be calledsum. And the examinations of the orderbook can go. Also different exchange platformsonly establish a specific amount of buy and sell blankets of orderbook. Which means youcan only monitor a specific depth for costs. The amount represents measurements, the expenditure standsfor the cost and total represents total measurements. What we can see in this example is thatthere are players who would like to buy 1.399 quantity of ETH with USDT with expenditure at 2799.4. Withthe current price of Ether of 2799.41 USDT. And there are other musicians who would like to sell3 7.220 of ETH for USDT with cost at 2799.41. There is a gap between the two, calledspread, and in this case it is 0.01 USDT.In another case we can see that there isa player or a bunch of players together who would probably use 328 000 USDT toget into the long berth on UNI futures. And by multiplying the expenditure per unit bythe number of sections, we can calculate how much money the person is going to investin the order. It is a huge amount of money. The buy side displayed in light-green, demonstrates allopen buy fiats below the last sold toll. Once the offer is is compatible with a sellorder, the craft will be facilitated.When theres a huge amount of buy tells thatwere increased at a specific price level, there would be a support level or also called a buywall. In this case, if those degrees are genuine, the price will not fall lower than that leveluntil this large number of seeks is fulfilled. The area tagged red is a sell side. It containsall open sell fiats above the last traded cost. The large number of sell lineups amassed fora specific price appoints a resist grade, called a sell wall. The price wont continueto rise until such orders are fulfilled. When someone arranges open buy say or open sellorder, it will automatically be added to the orderbook. Nonetheless, placing an open degree does notguarantee that someone would agree to said guild. Which likewise meant that before the prescribe isexecuted, whoever arranged the order will be able to cancel it.In case the user cancels theorder, it wont be counted in the orderbook. In other names, the lineup will remain inorderbook either until the toll reaches the established level and the fiat get fulfilledor whoever residence the seek, nullifies it. Theres a form of orderbook thatscalpers its utilization and which I, personally, prefer. I use it since my tradingtechnique is mostly based on order book as I like to use orderbook to find bigplayers on the market and play by their rules.This layout represents three main parts of themarket. The first on the left is history fiats, which shows what just happenedand how many seeks were performed, for what amount and at what price.The second part in the middle is the real-time fulfilled lineups which arehappening right now. The third part on the right side is the orderbook itself. We cancall it possible future fulfilled dictates. As we can see in this example, Im trading ADAUSDTfutures. The cost of ADA is 1.3707 and we can see that there is a big sell wall on the price levelat 1.3977. So I will be probably monitoring the situation and before locating my fiat, I willcheck whether this wall is genuine or not. From my perspective, orderbook can assist you makea more informed and precise trading decision. When youre trading, its very important to find asmany intellects as possible to check whether youre right or wrong. So thanks to orderbook, you canfind potential price moves, grocery inequalities, large-hearted musicians or spoofers, and of course, betterplaces to open your successions and closed down. If I see imbalances in orderbook, I candetermine where the pressure is coming from, whether its buying or selling distres. Then, I can be ascertained potential resistanceand brace extents on the market. For example, if I investigate a large amount of buyingorders on the register, Id determine that its a potential subsidize degree or a spoofer. Same goesfor if I find a huge number of selling orders on the listing for a specific price. Id determinethat its a fight stage or a spoofer. There are lots of manipulativeplayers on the market, even bots who are trying to influenceother races decisions through orderbook. They are spoofers.They use a huge amount ofmoney to arrange prescribes for a specific price level. Those successions are then used tointerfere with people decisions. And when the price of the instrument getsreally close to the spoofers tells, the spoofer offsets the open orders, whichmeans that the market didnt execute them and the spoofer expended a clevermethod of influencing world markets. Of track, spoofers can be anybody small-scale buyers or big companies.Cryptocurrency grocery is still very unregulated, compared to stock market. So the manipulators have it easier. Why they do it? Well, if a spooferplaced a long order, they might want to increase the price of the instrument. Their large numberof says will reach others believe that there a big support on that level and people are going tobuy this instrument because if the price will fall down, the programme will execute the tells on thesupport position and then, the cost will rise again. The same is true for when the spoofers would liketo buy instruments for the rate thats lower than the current one.They execute a short orderand create the pressure for expenditures to go down. Whats important is that some exchanges haveso-called dark reserves. Those dark consortia have orderbooks invisible to the public. Exchangesprovide this service to large players, who dont miss for their trading intentions to be known byothers. Without the dark consortia, the premium spikes would be more drastic. If theres a very bigplayer coming to the market and the information about the deal becomes public before thetrade is actually implemented, this will lead to huge increase in price as opposed to the transactionhappening firstly and the public finding out later.If you still have some questions letsjust open an open say on my note. For example, if we think that ADAs price isgoing to rise, we would like to open a long order, but we would like to find the lowest priceavailable for us to execute this succession. So for example, I argued that before theprice will rise it will get to this point, causes say at 1.3690, where I wouldlike for my buy dictate to be executed. So I arrange my open tell, and if the expenditure getsto this level, the system will execute my prescribe. When I sit my open seek, my orderbecomes a part of orderbook.In this case, our say length is really small for it tobe noticeable. If the line-up located is big, that large amount will be displayed inorderbook more and will be noticeable. There are different types of requires, such asopen orders and market lineups. Open lineups are those waiting to be executed. Marketorders are executed instantaneously. Some suffered sellers usually like to wait forthe price to get to a specific point and implement an open seek. Some spontaneous buyers liketo execute crafts quickly with sell prescribes. Exchanges frequently accuse higher transactionfee for those who fulfill their transactions speedily. These people act as takers.Those whoplace open prescribes and act as creators, on the other hand, are blamed lower fees. Themain reason for this is that a taker removes the liquidity from the trading duet while a makerincreases the liquidity of a trading duo. Lets locate an open seek. As « youre seeing » I placedan order for 5 of ADA for world prices of 1.3690. If the cost gets to this level, my futures say will be executed. And tells sit a market order. As you cansee our tell was executed instantaneously, and we even payed 0.2% of our deal in 2 minutes. Pros of using orderbook would be that ithelps you to see more things when you transactions. I would like to ask you when you run a marathonwhether you run with your eyes closed or opened? The same for trading, if you is not verify thingsor market by judge, it would be gambling, but if you witness things and analyze them, youd havehigher potential of placing a successful order.As I said before, orderbook improves tradersby showing them the real-time data and hopefully supplies a more logicalexplanation of whats happening on the market. My personal trading techniqueis mostly based on orderbook feature. In the future we will be doing real-timeonline trading streaming on this path, where you would be able to see real ordersand I will be sharing my trading proficiency with you guys, so make sure you subscribeto this channel and reached the like button. I am Vlad, see you in the next bout.