#TradingTypes101
On Binance, it refers to the fundamental and essential trading concepts that a beginner would learn and apply specifically on the Binance platform. It's essentially an introduction to how to trade on Binance and what types of trading are available.
It typically means on Binance:
Spot Trading:
Most common and fundamental type of trading.
You buy a cryptocurrency (like Bitcoin) using another currency (like USDT) at the current market price or a specified limit price, and you own the asset. You'll find pairs like BTC/USDT, ETH/USDT, etc., in the "Spot" section.
Key Orders: "Trading Types 101" here would cover:
Market Order: Buy/sell immediately at the best available current price. ⚡
Limit Order: Set a specific price to buy/sell at. Your order only executes if the market reaches that price. 🎯
Stop-Limit Order: An order that becomes a limit order when a specified stop price is reached. Crucial for risk management! 🛡️
OCO (One-Cancels-the-Other): Combination of 2 orders where if one executes, the other is automatically cancelled. Great for setting both a take-profit and a stop-loss. ✅
Margin Trading (Leverage):
Means borrowing funds from Binance to increase your trading position beyond what your own capital allows. On Binance: Found under "Margin." It amplifies both potential profits and losses.
101 Note: Usually not recommended for absolute beginners due to higher risk. ⚠️
Futures Trading:
Means trading contracts that derive their value from the price of an underlying asset (like Bitcoin) without actually owning the asset. You can go long (bet on price going up) or short (bet on price going down) with leverage. On Binance: Available as USD-M Futures and COIN-M Futures.
101 Note: Highly risky due to leverage and volatility. Definitely not for initial beginners. 🚫
Convert:
A very simple way to instantly convert one crypto to another at the current market rate, without the complexity of a trading interface.
On Binance: Found under "Trade" -> "Convert." Perfect for true beginners who just want to swap assets.
