#TradingTypes101
Being able to master trading forms is a must for shaping a stable and safe strategy.
When a trader makes a Spot purchase, they either buy or sell assets at current market rates and receive them immediately; this method is straightforward, has minimal risks and is superb for starters who are building their own portfolios.
With Margin trading, you can use one part of your funds, and the rest will be the borrowed money to get more significant positions, thus increasing potential rewards but also risks; that's why those professionals who are not afraid of trading with high risk and have experience in trading are the best.
Futures trading uses agreements to purchase or sell assets at a predetermined price on a specific date in the future. It's a hedging method and also speculation if the investor or trader has the market knowledge required to handle the leverage and volatility.
Traders can use the spot market for long-term holding, while margin trading is suitable for short-term, leverage trading or they can use futures for various hedging or advanced strategies.
I am more inclined to spot trading because it is simpler and carries less risk for me.
Here are some basic hints for beginners: Begin with spot trading to acquire trading skills, identify and eliminate the danger, and refrain from using additional capital until you have full confidence. Conduct extensive research to be sure, and make your final decision in line with your objectives as well as your risk appetite.
