📚 #TradingTypes101

Spot vs. Margin vs. Futures – What’s the Difference?

Whether you're a beginner or an experienced trader, understanding the different types of trading on platforms like Binance is essential to building a smart strategy.

🔹 Spot Trading

This is the most straightforward type of trading. You buy or sell crypto at current market prices, and the transaction settles instantly. You own the asset directly. It's great for long-term investors or those who prefer low risk.

🔹 Margin Trading

Margin lets you borrow funds to trade larger amounts than you own. It amplifies both gains and losses, so while it increases potential profit, it also raises the risk. Ideal for experienced traders who understand leverage and risk management.

🔹 Futures Trading

Futures involve contracts to buy or sell assets at a future date and price. You don’t own the underlying crypto — you're speculating on price movement. Futures offer high leverage and are often used for hedging or short-term strategies.

💡 Tip: Always assess your risk tolerance and trading goals before choosing a method.

Binance supports all three — Spot, Margin, and Futures — each with its own tools, interfaces, and strategies.

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