To become a good trader, it is essential to know about the various types of trades and accordingly to plan the strategies #TradingTypes101 .

Let's break some insights on various types of trading strategies.

*Spot Trading*

involves buying and selling for immediate delivery. More leverage or margin is required for this type of trade. So potential gains or losses becomes limited. It's suitable, mainly for long term investments.

*Margin Trading*

-requires the trader to borrow funds to buy more assets. Risk of potential gains or losses due to liquidations are involved in this trade if crucial risk management is not done properly.

*Future Trading*

-involves buying or selling contracts that obligate the buyer to purchase an underlying asset at a predetermined price on a particular date. It allows the trader to open a large position on a relatively small capital by taking the advantages of leverages provided. However, it's fraught with the risk of potential loss if higher leverage are availed by the trader in a volatile market.