What is spot trading?

Spot trading offers a simple way to invest and trade. With crypto investing, your first experience will likely be a spot transaction in the spot market, for example buying BNB at the market price and HODLing. Spot markets exist across different asset classes, including cryptocurrencies, shares, commodities, forex, and bonds.

What is algo trading & how does it work?

The defined sets of instructions are based on timing, price, quantity, or any mathematical model. Apart from profit opportunities for the trader, algo-trading renders markets more liquid and trading more systematic by ruling out the impact of human emotions on trading activities.

Is margin trading the same as spot trading?

Margin trading is available in some spot markets, but it’s not the same as spot trading. As we previously mentioned, spot trading requires you to fully purchase the asset immediately and take delivery. In contrast, Margin trading lets you borrow funds with interest from a third party, which allows you to enter larger positions.

How do spot traders make money?

Spot traders try to make profits in the market by purchasing assets and hoping they’ll rise in value. They can sell their assets later on the spot market for a profit when the price increases. Spot traders can also short the market. This process involves selling financial assets and repurchasing more when the price decreases.