Lesson 4: Spot, Futures, Margin – Which market to use for trading without burning out?
When you open Binance, you see several markets: Spot, Futures, Margin.
But what’s the difference? And which one is good for starting safely?
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1. The Spot Market – The simplest to start with
You buy a crypto (e.g., BTC)
It is yours until you sell it
No leverage → you can't lose more than what you have
You profit when the price goes up
No liquidation
→ This is where we will trade together.
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2. The Futures Market – For advanced traders
You don’t really own the crypto
You bet on the rise (LONG) or the fall (SHORT)
You can use leverage (e.g., x10)
Very profitable but very risky: you can lose all your capital in a few minutes
→ Not recommended at the beginning. You must master risk management.
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3. The Margin Market – Trading on credit
You borrow money from Binance to increase your position
You pay interest
You can also be liquidated
→ Even more dangerous for a beginner. We avoid it.
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So, what do we do together?
We will focus on the SPOT market.
Why?
No liquidation stress
You control your capital 100%
You can apply all analyses and strategies
You can learn without burning your account
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Quick conclusion:
Market Risk Real ownership Leverage Ideal for
Spot Low Yes No Beginners
Futures High No Yes Pro traders
Margin Very high Yes Yes To avoid at the beginning
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Lesson 5 is coming: What type of trade will we make? Discover the concrete plan.
Like if you choose safety.
Comment “SPOT 100%” if you follow the movement.
