Trading:
Trading is the basic term to define a word trade. Trade is a main or basic economic concept of buy and selling of goods and services between the buyer and seller. The amounts of the goods are paid by the buyer to a seller, or exchange of the product or goods or services between the parties.
It is the reason why an American consumer can pick between a Japanese, German, or American car. As a result of international trade, the market contains greater competition and therefore, more competitive prices, which brings a cheaper product home to the consumer.
Exchange:
You buy something and someone sells something like goods or any kind of services. so how can you find to sell or buy if you find by yourself so there is a lots of hard work or impossible to find and if you find someone, then how can you sure about him that he is trustworthy or not a cheater, actually in reality you can’t be sure about him.
So the exchanges are come here who were done this work for us. The exchange main work is that to create a platform where the buyer and seller are exchange or buy and sell their goods easily.
For Spot trading and Margin trading you have to Login or create an account on any exchange which is suitable for you.
Let’s take an example of Binance exchange
If you want to trade on Binance exchange first you have to Login or create an account on Binance exchange
So if you have an account then Login, if you don’t have an account so first you have create to click on this link.
SPOT Trading:
Spot trading this term is generally used in every trading platform like if you trade in share market, forex market, cryptocurrency market. It means buy and sell a product, stocks at any platform which is suitable for trading for you.
In general way spot trading is like you buy something like stocks or any cryptocurrency at low price when the price of this share or cryptocurrency is high you have to sell with good profit. That’s it
For spot trading use these steps.
1. You have to login in your account and go to the the home page of the the exchange.
2. Then click on any cryptocurrency on the home page, and go to the corresponding spot trading page.
3. Then you will see trading page on the, where you have to see the order book which is use to buy and sell cryptocurrency.
4. When you have to go to the order book you will see the default order type limit order, limit order option is use to book order at your suitable price or if you want to buy as soon as possible so you have to change to market price.
Now you can see in open order option that your order is executed or not.
Stop Limit:
You have to put the stop limit in the trade the. When it comes to the stop limit order, the stop price, the price at which an order a become proceed and confirm order when the price is reached. Use always difference 1 Satoshi, USDT or your preferable currency to but a stop loss or stop limit.
Margin:
Margin trading is a method to trade with borrowed funds which is provided by third party. Margin accounts allow traders to access greater sums of capital, allowing them to leverage their positions
This ability to expand trading results makes margin trading especially popular in low-volatility markets, particularly the international Forex market. And margin trading is also used in stock, commodity, and cryptocurrency markets. The borrowed funds are usually provided by an investment broker.
Margin trading:
margin trading is same as spot trading but there is a little bit difference between them in spot trading you have start your trading from home page of the website homepage I think it’s easy to start but in the margin trading you have starting with some few steps. Keep following guys.
Now here we started
1. First you have to LOGIN or create your account on binance. If you don’t have an account in binance so click here to create your account on binance.
2. After LOGIN in your account you will now be on your account dashboard. You can see your account balance from this page. “Balance Details” click on “Margin” to begin the process of opening your margin trading account on binance.
3. After click Margin you will see the reminder about the risk so please read it carefully and click “open margin account” and then click “I Undertand” button.
4. Next, you have to transfer your balance from Spot balance to Margin balance.
5. Then now you have to select the margin type which is Cross or Isolated.
6. After selection the type of the margin you will see the leverage of the margin. In cross margin you will have change the leverage level 3x to 5x or 5x to 3x as per your trade requirement but in the isolated margin you can’t be change the leverage level of the selected coin in the isolated margin lot’s of coin with different margin or leverage level.
7. Now you have select the coin and select the order type, Limit order, Market order.
8. Next, select the borrow option to borrow the amount and click “Margin Buy BTC” at the place of the BTC you can choose your coin
9. Now you can see your order in open order and after execution the order you have put the stop loss to select the stop market in sell with repayment option. Select repay then click on “Confirm Repayment”.
10. When the trade is reached your desired price then you have to repay the borrowed amount.
I want to tell you one more thing and that is you can trade both BUY/LONG and SELL/SHORT in margin trading but one trade at one time. OKk
The Margin Level: On the right side of the screen, you will see your margin level, which gives you a risk level according to the borrowed funds. The risk level changes according to the market movements.
The formula to calculate the margin level is
Margin Level = Total Asset Value / (Total Borrowed + Total Accrued Interest)
OCO: This option is use to put the stop loss and target price at the same time.
Limit Order or Price: The price of your limit order is that which is your target price actually.
Stop : The price at which your stop limit order will be triggered.
Limit : The actual price of your limit order after the stop is triggered.
So, Have nice and profitable trade.
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