#TradingTypes101 En Binance, you can find different types of trading, each with its own approach and strategies: spot trading, margin trading (isolated or cross), futures trading, options trading, and trading with bots.
1. Spot Trading:
It is the most basic trading method, where you buy and sell cryptocurrencies directly.
It involves buying and selling assets at the current market price.
2. Margin Trading:
Uses leverage to increase the potential for gains and losses.
Isolated Margin: The risk is limited to the individual trade.
Cross Margin: The entire account balance is used as collateral.
3. Futures Trading:
Allows speculation on the future prices of cryptocurrencies.
Offers the possibility to trade with leverage and take both long and short positions.
4. Options Trading:
Provides the right, but not the obligation, to buy or sell a cryptocurrency at a specified price on a specific date.
Used to manage risk and take advantage of market volatility.
5. Trading with Bots:
Binance offers trading bots that automate trading based on pre-established parameters.
The Grid Bot in Spot is an example of a bot that can trade within different price ranges.