#TradingTypes101 #TradingTypes101

Here are the main differences between the three trading types:

**Spot Trading**

- You're buying and selling assets using your own cash.

- You get your assets right away.

- There's no borrowing involved.

- Lower risk because you can't lose more than what you put in.

- It's pretty straightforward.

**Margin Trading**

- You can borrow money from the exchange to trade more than you have.

- It involves leverage, like 2x or 5x.

- You’ll owe interest on what you borrow.

- You can make more money but you can also lose a lot more.

- You could lose more than your initial investment.

- You need to provide collateral and keep an eye on your margin.