Hello Steemians, I want to thank the Steemit CryptoAcademy for this wonderful opportunity and for providing a sound knowledge of cryptocurrency. This post is going to be about my task after completing my lesson on spot trading.
In this Post , I will discuss about Spot Trading and Margin Trading.
Firstly , I will discuss about Spot Trading and It's Features.
What is Spot Trading?
Spot Trading takes Place in the Spot Market at the Spot (Current) Price. Spot Price Means Current Price.
With Spot Trading, You are essentially executing a trade at the immediately available asking and budding price that market traders are asking for.
And Just Because of Spot Trading, You will need to have the available assets to pay for your trade by the date of settlement.
For Instance , Let Suppose If you are buying $1000 worth of Litecoin with Spot Trading, then You will need $1000 balance in your account.
This is all about Spot Trading.
Advantages of spot trade
Spot Market contract are easier to execute.
They always have a way of making it easier when the price is not to their teast.
Disadvantages of Spot trade
Risky involve in trading
Poor planning
Disadvantages of Spot trade
•Risky involve in trading
•Poor planning
What Is a Margin Trade?
In margin trade, as the name implies margin it simple means joining i.e they whole persons involved in the transaction has to be joined together, in these case they third party will bring the fund for these transactions. The profit in margin is very large and because of that, many tends to be involved in it.
Advantages of margin trade
There are various advantages of margin trade but for the want of time I will be discussing just but a few.
Very large profit is involved.
Easier to trade with very little amount
Diversification is another important feature of these trade
Disadvantages of margin trade
Low probability of loss
Drop in market price can cause confusion in the minds of traders.
Conclusion
I have read and understand spot and margin trade all thanks to @besticofinder for these amazing privileged. Please fell free to drop your questions on they comments section if any.
Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@besticofinder
Thanks for reading...
Hello @swetatiwari,
Thank you for submitting the homework task 3 ! You have discussed the requested topics for the task !
Yes , but in margin trading we can see a higher risk than spot trading ! Small change in the market price can cause a large loss. [5]
Thank you
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