HOME WORK : SPOT/MARGIN TRADING EXPLAIN SIMPLY FOR BEGINERS

HEY PROF @besticofinder last week i was busy at the university i perform only 3 assignment i am hoping to do more this week .
in this article i will be explaining spot/margin trading down to a simple language any beginner can read and understand .

SPOT MARKET

This Market provides a space where people buy/sell actual Bitcoin or other Altcoins ,in simple terms it refer to where cryptocurrencies are excghange.

where to locate the Spot market on an exchange platform ?
i will be using binance to explain most of the terms in this article , before you trade in the spot market you need to creat an account with the crypto exchangeplatform .

Firstly after loging in into your account ,you will land on the home page of the exchange platform (BINANCE) , from the top bar of this site i dentify market and click on it .

Others might choose to scroll the home page down and click on the cryptocurrency pairs to go to the market , but i will take you through he basic steps .

after clicking on the market , the trading center will open kindly identify Spot market click on it , a whole lot of currency pairs will appear you choose the one you want to trade or you search for your favorite pairs as seen below :

After selecting the pair the spot market place open up , it has a whole lot of features which i wil be explaining into details .

1. we have the currency chart , this allow you to see how the coin is moving at different time , you can also do some techinal analysis to know when and where to buy or sell your coins .
   the photo below is the chart showin how steem is moving against BTC .

looking at the above diagram you can see a bar chart below the candle stick chart that indictaes the volume of steem in the market so far , this can tell you the potentials of the coin.

2 . At the right side of the chart we have a an order book which is a list of trade placed by different type of traders to either buy(bid) or sell (ask), traders study coins and make decision and place it in the form of request , as new spot trader either you biding or asking you can follow any of the prices listed on the order book .
mostly the sellers are represented in Red and buyers in green as shown below :

1. PLACE ORDER SECT : At this interface you are allow to enter the price you want to buy or sell the coin .
   but before that you have to known the terms involved here .

LIMIT : this allow a buyer or a seller to manipulate his or her order to chose the amount that they will be selling their or buying the coins . this people are called Makers because they contribute to the history of the coins on the order book

MARKET : market under the place order allow the buy or the seller to perofm an instant transaction with the current arket price , they are refervto us takers because they do not add anythimg to the order book .

From the picture above one need to only click to switch from buy to sell and before one can do this transcation you need to deposite in your spot wallet .
the will be a bar which can be scroll from left to right and reversal that will allow you choose the perentage of your spot wallet should be use for a particular trade .

basically this is what happens on the spot market , it all about buying and selling your coins .

MARGIN TRADING

Sometimes in business not everyone has the capacity to expand quickly , so do get the chance to expande from their profits others dont they have to go for laons ,we all know before you go for loan from any bank you need to be a trader there holding an account and mostly they give loan base on your money deposited with them or they will check your assets and leverage the loan on it .

in crypto exchange platform we have something similar , where a third party or the broker will offer you certain ammount of money or coin to trade with .
the lender make profit also base on the demand of funds , in simple term margin market is borrowing to trade and apy with interest , mostly with binance the repayment is manualy .

to trade this you need to follow this steps

Open a Margin Account
click on BTC/USDT on the home bage of binance

Scrolling down ,below the market volum of the coin pair (the bar chart) there is a place order section and we have options such as limit, cross 3x and isolated 10x.

• Click on Cross 3x , a pop out message will come for you to take quiz if you are using Binance ,after wich you open the account and set to transfer colletral or money from your spot wallet to margin wallet

the money deposited in the margin wallet serve as a commitment to secure a loan ( colletral).

• the next features will be open once you deposite a fund and you can do auto borrow to start trading with laons.

ADVANTAGES AND DISADVANTAGES OF SPOT TRADING

ADVANTAGES

1. It is transparents both parties can see the transaction going on

2. you can hold your coins or find better coins to invest in at anytime at all

3. all coins use here are personal so low risk of bein in debt

Disadvantages

with this you have limited fund in your wallet an when you loose it all goes

ADVANTAGES AND DISADVANTAGES OF MARGIN TRADING

margin trading is to gain more profit. You can trade as much as your investment on a crypto exchange. With these options, you have large amount of capital to trade with , so you can make boom profit as well

on the other hand ,it is risky especially trading a higher percentage of your capital can make you lose everything when the market goes bad . with this you can lose as much capital as you have .

NB : ALL IMAGE ARE FROM BINANCE

thanks to the following @steemitblog,@steemcurator01,@steemcurator02 for this great oportuinity