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 takes place in the spot market at the spot (that is, 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.
Margin trades is the concept of borrowing funds from a third party to leverage on your position. Margin trading is unlike spot trading. With margin trading, you do not need to have the entire trade amount to enter into a position. All you need to do is to have a collateral of assets that is at a margin of the position that you are trying to enter.