Hello everyone, it's nice to meet again this week, this time I will try to complete the assignment from the professor @reminiscence01 . The task this time is very extraordinary, I am very excited to do it.

1. Explain the following stating its advantages and disadvantages: Spot trading, Margin trading, Futures trading?

Spot Trading

Spot Trading is a process of buying and selling assets that can be done instantly. In the process of sport trading, of course, the method used is very simple. In this process most of the traders try to make a profit by buying some of the assets they want when prices are low and trying to sell them on the sports market when prices are rising.

Advantages Spot Trading

1. Spot trading is quite easy to understand for beginners and easy for them to get started.

2. In the trading process they can buy when the price is low and sell when the price is high in order to make a profit.

3. The amount of capital issued can be whatever it is not fixated on the unit price that must be issued for capital.

Disadvantages Spot Trading

1. Here it is necessary to have time to wait to see the price rise.

2. If the market is closed or an error occurs in the network when the price is rising it can also be a loss.

3. Obviously if the price continues to decline they will continue to lose.

Margin Trading

Basically margin trading is almost the same as sport trading, namely buying at a low cost and selling at an expensive price, but what makes it different is that in getting capital on margin trading you can get a capital loan with a certain value in the crypto market itself. With margin trading, traders can get more capital to generate more profits.

Advantages Margin Trading

• Profit margin trading we can buy and sell in larger quantities than the initial capital we previously had.

Disadvantages Margin Trading

• The disadvantage is that when it comes to lending and borrowing in the world of trading, the higher the interest they borrow, the higher the interest, it all depends on where they borrow from.

Futures Trading

Future trading is a trade that is carried out by contract between the two parties based on a margin system. As we know that people will be very interested in investments in tangible forms such as property investment and gold where they can see firsthand the form of what they are investing in and the profits they can estimate.

Advantages Futures Trading

• In futures trading you can get up to 100% profit in the year Next, if you buy gold at a price of 1 usdt in 2021, the price could change to 2 usdt in 2022.

Disadvantages Futures Trading

• Future trading can be a drastic decline because it is like a trend, if it is in a trend, the price can increase greatly, but if the trend ends, the period may immediately decrease drastically.

2. a) Explain the different types of orders in trading.

There are several types of orders in trading I will try to explain them briefly with what I understand.

Market orders

Market orders are a way in the world of trading to buy or sell at the best time and price at that time. In this market order system, purchases or sales are made at the same time without any delay at the current price.

Pending Order

A pending order is a trading process where when you have set a point for trading, you will make a purchase at that point by placing an order. Here, when the point is fixed, you will buy it without the need to take a long time to monitor the market price.

Limit orders

Limit orders are an order process in the world of trading where when you see a price where the price matches what you want, you can process it to buy or sell it. In this limit order process you can control all the risks that will occur while you are trading. In this process you can set a lower purchase price than the one in the market and also a higher purchase price if that price has not been reached then of course your order will not be processed in the market.

Stop Limit Order

This Stop Limit Order is basically not much different from a limit order where the aim of both is to reduce the risk of loss for traders. Here the combination of the two features, namely stop and limit, is the main key so that there is no unwanted risk. Here you can also buy at a lower price than the market and selling at a higher price but in the case of a stop limit order it is necessary to reach a stop price.

OCO Order

OCO, or "One Cancels the Other" from the long run, we can already see a little explanation about canceling one order from another where here we can combine limit orders and stop limit orders into one with later one of them will be canceled if the order one of them is pre-approved automatically in the market.

b) How can a trader manage risk using an OCO order? (technical example needed).

As I said before, the goal of OCO orders is to reduce the risk as small as possible in the trading process, in other words, everyone wants to make a profit without having to suffer a lot of losses where we can look for a low buy price and sell it at a high price. When we open an order to buy, of course, we monitor the market first, then we buy with a limit order and a stop limit order. When the limit order is fulfilled, the stop limit order will be cancelled.

From the screenshot that I have shown above, friends, you can see where I opened an OCO order on Binance which placed a limit order of 0.09914 to process trx to usdt and I also placed a stop limit order at 0.09900 if indeed the stop price continued to decline to 0.09906 to reduce the risk of loss.

3. Open a limit order on any crypto asset with a minimum of 5USDT and explain the steps followed?

• Here I choose the UPBIT market to do limit order trading.

• In the next stage, choose the coins that my friends will buy, here I choose to buy doge coins by placing a limit order.

• After that I put a limit order price and bought it.

• In the last stage, friends can see the transaction history of the doge purchase.

4. Using a demo account of any trading platform, carry out a technical analysis using any indicator and open a buy/sell position on any crypto asset. The following are expected.

i)Why you chose the crypto asset

I chose Dogecoin because this doge has a unique character where you can get extraordinary profits in a few hours but can also lose but with a nominal that is not too large in my opinion Dogecoin is one of the crypto assets that is not too bad to try for investors. For beginners, the capital spent is not too large, it can be used as an example of learning. here I usually start with a buy position when the chart is in a Bearish position to make a profit when the position later becomes Bullish.

ii)Why you chose the indicator and how it suits your trading style.

Before starting trading, I usually start by looking at the condition of the market being in a Bullish or Bearish condition. It can be said that I am still trading in a simpler and more relaxed way of spot trading, of course, to reduce the risk of losses that I will receive. I have also often traded this way with little to no profit so far but of course I will continue to try new ways to earn more.

iii)Indicate the exit orders.

From the picture above, friends, you can see that I benefited from the sale of the 3 Doge that I sold from the 5 Doge that I bought, as I explained earlier, the profit was not too much.

Conclusion

• Spot Trading is a process of buying and selling assets that can be done instantly.
• With margin trading, traders can get more capital to generate more profits.
• Future trading is a trade that is carried out by contract between the two parties based on a margin system.

Sorry if there are words and writing that are wrong, if other friends want to comment, please comment in the comments column below.

Thank you for reading my writing, see you in the next assignment.

Best regards @karimjz

CC:
@reminiscence01