Spot trading refers to the immediate purchase or sale of an asset (like Bitcoin). In the context of Bitcoin or cryptocurrency, spot trading involves buying or selling the actual cryptocurrency at the current market price. Here's a breakdown of how spot trading works in more details
Features of Spot Trading :
Immediate Settlement:When you trade in the spot market, the transaction is completed immediately.
Market Price:The price at which you buy or sell is the current market price, known as the spot price. This price is determined by the supply and demand of the asset at that moment.
Ownership:Once you purchase Bitcoin in a spot market, you immediately own the asset.
No Leverage:Spot trading typically doesn’t involve leverage. This means you're trading with the funds you actually have, reducing the risk of massive losses.
No Expiry:Spot transactions don’t have an expiration date. Once you buy $BTC , you hold it until you decide to sell.
