Understanding different types of trades will help you choose a strategy that aligns with your goals, experience level, and risk appetite.
1. Spot trading
🔹 What it is: Buying and selling assets with immediate settlement.
🔹 Risks: Minimal compared to other types of trading, as trades are made with 100% of your funds.
🔹 When to use: Suitable for long-term investors and those who want to avoid complex strategies.
2. Margin trading
🔹 What it is: Using borrowed funds to increase the size of trading positions.
🔹 Risks: High - in case of an incorrect forecast, you can lose more than you invested.
🔹 When to use: Experienced traders looking to make higher profits using leverage.
3. Futures trading
🔹 What it is: Trading contracts that fix the price of an asset for a future date.
🔹 Risks: High - requires a deep understanding of the market and risk management.
🔹 When to use: For short-term strategies and hedging risks.
Tips for beginners
✅ Start with spot trading - it is the safest and most straightforward.
✅ Do not risk more than you can afford to lose.
✅ Before using margin or futures trading, study the principles of risk management.
✅ Stay updated with news and analyze the market - fundamental and technical analysis will help make informed decisions.
