Margin Trade and Spot Trade

[raisajahan]

Spot trading is one which is deposited by yourself in particular exchange. This fund is open for trading every coin which is listed in that exchange. One the other hand margin trading is that which is borrowed from particular coin in that exchangers. There is few number of coin which is support for margin trading like 2x or 3x or 5x or others showing in beside of particular coin.

[sakib.bro]

I also don't know what is margin trading. Can someone describe it to me please??

[Anonylz]

I also don't know what is margin trading. Can someone describe it to me please??

You can read the full Explanation here

There is great profits in trading margin usually in futures market for cryptocurrencies and there is also great risk of losing money too. If you don't know how to trade futures, you shouldn't trade margin just cos you here you can double you investments cos investors can also loss all their investment in the same way. 

[sana12981]

Margin trading is when you buy and sell stocks or of invests with others borrowed money. Means you are into debt to invest, which is also known as leverage, which is the main idea that you can use others borrowed money to buy more stocks and make more money on your investment.

[sana12981]

Spot trading is the most basic type of investment you can make specially for newbies.
Immediate buying and selling are known as Spot Trade.

[kiwa]

Hello Everyone i want know that what is the Difference between Margin Trading and Spot Trading. I don’t know anything about Margin and Spot Trading.       

margin trading you can get loan maximum about leverage, example leverage 3
you can get loan 3x you capital money, and you can open sell position without have coin youre sell same forex

[alltalk]

Spot trading is common trading that all people know well. You can trade your crypto coins by making buy-sell orders, or you can choose market prices. All people already know this type of trading since most crypto exchanges have this market. While margin trade is a market that you can borrow funds on the exchange. Some people use this market because they can get easy funds there.

[Traderbtcc]

Spot trade is the normal trades where you buy or sell coins using some other coins you already have in your possession and its been stored in your exchange Wallet where you could hold or withdraw, in this trade there is no much risk applied.
   While margin trade is a trade where you borrow funds from the exchange and trade in a higher amount, trading more than what you already have while your assets on that exchange are used as collateral and when your trade are in loses the exchange keeps deducting from your assets till when there is nothing to deduct then at that point your account is liquidated meaning you have lost everything you hold in that wallet except in cases where u trade figures using isolated margin.

[robert20]

Spot trading is the traditional method of trading. In this you sell your crypto at the market price.
Margin trading is a little complicated. In this you can use some of your money and get a loan from the exchange. You have to give the exchange some portion of your profit.

[Cordillerabit]

Hello Everyone i want know that what is the Difference between Margin Trading and Spot Trading. I don’t know anything about Margin and Spot Trading.         

MARGIN TRADING= Margin trading is a method of trading assets using funds provided by a third party. When compared to regular trading accounts, margin accounts allow traders to access greater sums of capital, allowing them to leverage their positions. Essentially, margin trading amplifies trading results so that traders are able to realize larger profits on successful trades. This ability to expand trading results makes margin trading especially popular in low-volatility markets, particularly the international Forex market. Still, margin trading is also used in stock, commodity, and cryptocurrency markets.

In traditional markets, the borrowed funds are usually provided by an investment broker. In cryptocurrency trading, however, funds are often provided by other traders, who earn interest based on market demand for margin funds. Although less common, some cryptocurrency exchanges also provide margin funds to their users.

Ccto: Binance

SPOT TRADING = As the name suggests, spot trading takes place in the spot market at the spot (aka current) price. 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.
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). Otherwise, the exchange will not allow you to enter into the Ethereum position.

Ccto: TheCapital

[nelson4lov]

Both are quite different although I have never made use of margin because just like you I don't understand it, spot trading is just the regular buy or sell area, I guess you have made use of it a couple of times, whereas for the margin trading it deals with leveraging, like you can use a $100 and be trading like someone who has $10,000, depending on your leverage though,and also margin trading is more risky than spot trading.

[gabbie2010]

With reference to Binance spot trading is the normal type of trading without any leverage the main advantage is that it has a lower risk  compared to margin trading which compromises of cross margin and isolated margin in cross margin a trader borrows x2 of the portfolio eg a trader with $100 will have access to borrow $200 equalling $300 to trade but a higher risk in case of any loss while isolated trading the trader is borrowed x10 of the portfolio eg $100 to borrow $900 highly risky that can rekt the whole portfolio if the trade goes against the trader.

[Seerge]

During this time I used spot trading to get profit in Crypto trading, I have studied in Margin trading but I am not interested to learn any further. In my opinion, the margin trade if the profit is too high, because our profit will be multiplied by the multiplication value that we have found, and that is what I don't like.

[Sammy9ce]

If you do not go into details. Trading on margin allows you to make more money but at the same time you risk losing more.
Margin trading is similar to a (casino) in that you run the risk of losing everything if you are not in control and have no action plan.

Thanks for this have also been wondering what's the difference between them although I have never trade margin trading, it seems like meant for the professional traders only, I know about futures trading and I think futures trading is not as complicated as margin trading although same high risk.

[Fadhilz123]

Hello Everyone i want know that what is the Difference between Margin Trading and Spot Trading. I don’t know anything about Margin and Spot Trading.       

Spot trading means using your money, to make it simple If you deposit $100 in exchanges then you can only be using $100 to buy coins, but for margin trading, you trade using borrow funds with certain requirements. Margin trading is so risky so my advice just using spot trading