#TradingTypes101 Spot trading, margin trading, and futures trading are three ways to operate in financial markets, each with its own characteristics, advantages, and risks. Spot trading is the simplest form, where an asset is bought and sold at the current price. Margin trading allows the use of leverage, meaning borrowing money to operate with a larger position, which amplifies both potential profits and losses. Futures trading involves a contract to buy or sell an asset at a future price and date, and it also uses leverage.