Crypto Academy Week 3 Homework Post for [@besticofinder], Explain Spot Trading and Margin Trading and Discuss the advantages and disadvantages of Spot Trading and Margin Trading by @laser145



What is spot trading

It is basically about buying an asset, be it cryptocurrency or shares in cash, a give and take instantly through a platform that is responsible for protecting and giving the buyer or seller what is negotiated in advance. An asset with a certain value is bought by another certain asset or token upon completion of the transaction, the shekel closes benefiting both the buyer and the seller.


El spot trading cuando el vendedor coloca un precio estipulado ejemplo 10 y el activo esta bajo ejemplo 8 el vendedor queda en espera hasta que el activo suba a 10 y tenga un comprador en este caso la transaccion es inmediata estas son spot trading


toma de twt.jpg
capture taken from my phone to my twt wallet

➊In the upper right letters in RED are the sales orders.
➋At the bottom right, in GREEN are the purchase orders.
Having the value you want to buy or sell in the upper left
In just below you will find the amount of token you want to sell then you give buy or sell to start the operation


Conclusion

Spot trading can be done whenever you want with low capital in the market, it has no risks and the way to do it is very easy and simple.The operations are almost instantaneous when the purchase and sale protocol is fulfilled one of the things I see is that You have to wait if or if the purchase and sale parameters are met and to see benefits you will have to have a larger capital.


Margin trading


Margin trading, unlike spot trading, in this trade you can borrow loans by amplifying the trading margin, this market is used in the stock market, foreign exchange market, raw materials and cryptocurrencies, amplifying the profits of trading when the operation is successful.


image.png

Brief example if you want to do a $ 100 value operation but you only have $ 50 then you use this method you borrow the other $ 50 from the lender and you wait for the market to do its job. It is like a betting market but in your favor. The one who borrowed the loan has to pay the lender regardless of how this market moves.


Disadvantages of margin trading

I see it as a capital insurance since it regulates the loss of the merchant who borrows in order not to lose his funds since it is controlled by the exchange to prevent funds from being lost.

Conclusion

The two aforementioned methods have the obligation to cancel if or if your debt regardless of what happens in the trade, they also have to have a previous study and a lot of research so as not to make any mistake and this can be harmful.

Note: Greetings in advance, I wanted to thank professor @besticofinder for taking part of his time to dedicate it to steemit and to the academy, I will give my best to make it a good research work


CC
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@besticofinder
by@laser145



Comments 2


Hello @laser145,
Thank you for submitting homework task 3 ! You have discussed the topic well with facts ! nice work [6]
Thank you

08.03.2021 00:40
0

Thank you very much teacher the time of 7 days ends today, I hope the curators remember me :)

10.03.2021 11:57
0