#TradingTypes101
Let's break it down:
*Spot Trading*: Buying or selling assets directly, owning them outright. Suitable for long-term investors, straightforward, and no leverage.
*Margin Trading*: Borrowing funds to trade larger positions, amplifying potential gains and losses. Suitable for experienced traders, higher risk.
*Futures Trading*: Contracts to buy or sell assets at a set price, speculating on price movements. Suitable for advanced traders, high leverage, and hedging.
When to use each:
- Spot: Long-term holding, straightforward investing
- Margin: Experienced traders seeking amplified gains
- Futures: Advanced traders, hedging, or speculating on price movements
Which one suits your strategy?