#TradingTypes101 Binance is one of the largest cryptocurrency exchanges globally that offers several trade types to suit different user needs and trading strategies. The main trade types are spot trading, margin trading and futures trading.

Spot trading involves buying or selling cryptocurrencies at current market prices. It’s straightforward and ideal for beginners who want to own and store digital assets directly.

Margin trading allows users to borrow funds to trade larger positions than their current balance would allow. This amplifies both potential profits and risks. Traders must maintain a margin level to avoid liquidation.

Futures trading lets users speculate on the price of cryptocurrencies without owning the underlying assets. Binance offers both USDT margined and coin-margined futures contracts. These contracts can be either perpetual or quarterly.

Additionally, Binance supports limit, market, stop limit and OCO order types, giving users more control over entry and exit strategies. For passive income strategies, grid trading and copy trading are also available.

Each trade type suits different risk levels, from low risk spot trades to high-leverage futures. Understanding these options helps traders choose the best method for their goals and risk tolerance.