#TradingTypes101
#TradingTypes101 Difference between Spot, Margin & Futures
- Spot Trading: Buy and sell assets instantly at the current market price. Very good for long-term investment.
- Margin Trading: We can use leverage to increase purchasing power. Higher potential profits, but also higher risks!
- Futures Trading: Trade contracts based on future price movements. No need to own the asset, but risk management is key!
When to Use It?
- Choose "Spot Trading" for stable investments and full asset ownership.
- Use "Margin Trading" if you want to trade with more capital, but be prepared for liquidation risks.
- Choose "Futures Trading" to take advantage of price movements without actually owning the asset.