What is spot trading and how does it work?

With spot trading, you are essentially executing a trade at the immediately available asking and bidding price that market participants are asking for. And because of the immediate nature of spot trading, you will need to have the available assets to pay for your trade by the date of settlement.

What is margin trading?

Key Takeaways. Margin refers to money borrowed from a brokerage to trade securities. Margin trading therefore refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.

What is crypto spot trading?

Spot trading is simply the direct purchase or sale of an asset such as a commodity, stock, bond, or even currency. Crypto spot trading is the same, except it is the direct purchase or sale of a cryptocurrency such as Bitcoin, Ethereum, BNB, or others.

How much balance do I need for spot trading?

And because of the immediate nature of spot trading, you will need to have the available assets to pay for your trade by the date of settlement. For instance, if you are buying US$1,000 worth of Ethereum with spot trading, you will need US$1,000 balance in your account by the date of settlement (usually T+2 days of the trade).