#TradingTypes101

T#TrumpVsMusk here are many different types of trades available for traders. each has its own pros and cons. the risk factor also varies with each type.

Spot trading: spot is just buying an asset and holding it till one wants to sell. it works more like a real world asset. just like someone buying a piece of land today and selling it at a higher price after a couple of years or few months. The same way in crypto world crypto currencies are bought and held for some time till the right time. this type of setup is very much risk free. it doesn't liquidate the trader at most.

futures trading: futures trading is very risky. it's profit and loss margins are also quiet high. loss includes even complete liquidity. the leverage is added to the principal amount which makes the capital the multiples of initial investment. and the profit and loss is calculated on that leveraged capital. this makes it very risky. high leveraged position could get liquidated even with a very slight movement in market