📚 Terminology Series (Part Two): 6 Essential Concepts You Need to Understand Before Trading on Binance! 💡
🔹 For beginners who always ask: "What does Market mean? What does Spot mean?"
Here’s the answer👇
1️⃣ Market (Market Order) 🟢
A direct buy or sell at the best available price currently in the market.
✅ Fast – ⚠️ but the price may be higher or lower than expected.
2️⃣ Limit (Limit Order) 🟠
You set the price at which you want to buy or sell, and wait for the market to reach it.
✅ More control – ⚠️ but it may not get executed.
3️⃣ Spot 🟣
The direct trading market. You buy and own the currency immediately.
Example: You bought BTC = You have BTC.
✅ Simple and safe for beginners.
4️⃣ Futures (Futures Contracts) 🔴
Trading on the future price of currencies, without actually owning them.
✅ You can achieve significant profits – ⚠️ but there are high risks and potential losses.
5️⃣ Stop Loss (Stop Loss) ⛔
An automatic order that sells the currency when it drops to a certain price, to protect you from significant loss.
Example: You set the stop loss at 100, if the price reaches it, it sells automatically.
6️⃣ Take Profit (Take Profit) 💰
An automatic order to sell the currency at a higher price than the purchase price, when it reaches it, you take your profit.
Example: You bought at 50, and set the take profit at 70, if it reaches it, it sells automatically.
💬 Write in the comments any term you came across and didn’t understand, and I will explain it in the next post 👇
