#TradingTypes101

An example of BNB/USDT trading type is spot trading, where users buy or sell BNB (Binance Coin) using USDT (Tether) at the current market price. For instance, if 1 BNB is trading at 600 USDT, a user can purchase 2 BNB for 1,200 USDT. Spot trading is straightforward and ideal for beginners because the asset is transferred directly into the user's wallet after the trade. Another trading type is margin trading, where traders borrow funds to trade larger positions. For example, with 1,200 USDT and 2x leverage, a trader could control 4 BNB instead of 2. There's also futures trading, where traders speculate on the future price of BNB/USDT without owning the actual asset. In futures, profits can be made from both rising and falling markets, but the risk is higher. Each trading type—spot, margin, or futures—offers different risk levels, making it important for traders to choose based on their experience and goals.