Hello Steemians .....

In this Post, I am here to present myhomework task-3 which is given by Professor @besticofinder.

So, Let's begain.

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In this Post , I will tell about Spot Trading and Margin Trading.

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Spot Trading

Spot Trading takes Place in the Spot Market at the Spot (Current) Price. Spot Price Means Current Price.

With Spot Trading, You are essentially executing a trade at the immediately available asking and budding price that market traders are asking for.

And Just Because of Spot Trading, You will need to have the available assets to pay for your trade by the date of settlement.

For Instance , Let Suppose If you are buying $2500 worth of Litecoin with Spot Trading, then You will need $2500 balance in your account.

That's it.

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Advantages/Benifits of Spot Trading

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1 - Spot Market contract are easier to execute.
2- Its instant completion makes it easy to use the asset for what you needed it for, without having to wait.
3 - They always have a way of making it easier when the price is not to their teast.

Disadvantages/Loss of Spot Trading

1 - Risky involve in trading
2 - It limits traders to what they have in their wallet, thus they can’t engage in any trading volume beyond what they have.

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what is margin Trading?

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Margin trading is different from spot trade, in that you need to use acquired funds from a third part to enter the trade. Here you need to have some funds in your wallet which serves as collateral for the amount you want to trade with

The profit in margin is very large and because of that, many tends to be involved in it.

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Advantages/Benifits of margin trade

1 - In margin trading, there is opportunity for more profit. This is because of the possibility of trading high volume with third party funds.
2 - Very large profit is involved.
3 - Diversification is another important feature of these trade

Disadvantages/ Loss of margin trade

1 - Margin trading is highly risky. In the event of trading with 100% of you capital, you can lost a huge sum if not careful.
2 - Drop in market price can cause confusion in the minds of traders
3 - The firm/broker can sell your securities or other assets without contacting you.

Thank u for reading

Cc:-
@steemitblog
@steemcurator01
@steemcurator02