Here's an easy and short lecture on spot trading — perfect for beginners:
🔸Spot Trading Explained – Simple Lecture
What is Spot Trading?
Spot trading is when you buy or sell a financial asset like Bitcoin, Ethereum, or stocks immediately at the current market price. It's called “spot” because the trade happens on the spot.
🔸 Key Points:
1. Real Ownership:
When you buy in spot trading, you own the actual asset. For example, if you buy 1 BTC, you really own 1 Bitcoin.
2. Market Price:
You trade based on the current price shown on the exchange — this is called the spot price.
3. No Leverage:
Unlike futures or margin trading, spot trading does not use borrowed money. You trade only with what you have.
4. Simple and Safe:
It’s the safest way to trade for beginners. No risk of liquidation like in leveraged trading.
🔸Example:
▪️You see Bitcoin is $60,000.
▪️You decide to buy 0.01 BTC for $600.
▪️You now own 0.01 BTC in your wallet.
▪️Later, if BTC rises to $70,000, your 0.01 BTC is now worth $700.
🔸 Summary:
▪️Buy/sell at current price
▪️Own the real asset
▪️No borrowing = lower risk
▪️Perfect for beginners