Tommaso
Thu Jul 11 2024
|
7 answers
1556
What is the difference between Crypto spot trading and margin trading?
Could you elaborate on the key distinctions between crypto spot trading and margin trading? In crypto spot trading, investors buy and sell digital currencies for immediate delivery and settlement, while in margin trading, traders borrow funds from a broker to amplify their potential profits or losses. Could you explain how these two trading methods differ in terms of risk exposure, leverage usage, and the overall trading experience? Additionally, what are some of the advantages and disadvantages of each trading strategy, and how do investors determine which one suits their trading needs?
