Spot Trading
Definition: Buying or selling assets (like stocks or crypto) for immediate settlement.
Ownership: You fully own the asset once the trade is completed.
Funds Used: Only your own money.
Risk Level: Lower risk compared to margin trading.
Example: Buying 1 BTC using $100,000 of your own money.
Margin Trading
Definition: Trading with borrowed funds from a broker or exchange to increase potential returns.
Ownership: You don't fully own the asset unless you pay back the loan.
Funds Used: Your money + borrowed money (leverage).
Risk Level: Higher risk; losses can exceed your initial investment.
Example: Using $10,000 of your own money and borrowing $10,000 more to buy $20,000 worth of Bitcoin (2x leverage).
