Hello friends I hope all friends will be happy and Good. this is my homework post Season 4 week 6 trading cryptocurrencies.

Explain the following stating its advantages and disadvantages:

Spot trading

Margin trading

Futures trading

Spot trading.

Spot trading is a type of trading, the trader buy the coins at a low rate and when the market goes to you, he sales his coins, similarly he gains profit we call it spot trading.In spot trading, the trader can sell his coins at any time and he can buy his coins at any time and can sell the coins for sell at any time.In spot trading you do not face any problem because you can save your coins for short and long term or you can sell them whenever you wantA trader who is a sport trading trader keeps his coins with him for a specific period of time until his coins give him profit.In spot trading, both buyer and seller rates are being show at what rate are the sellers selling and at what rates are the buyers who are buying.

Advantages of spot trading.

• The crypto trader who is a complete control on his coins that he can sell it to him at any time at any rate.
• Good traders and are professional traders, whenever the price of their coins or tokens in the market comes down, they do not sell their assets until the value of their coins again exceeds the price they bought.good trader is always in profit and never loses but he holds his coins.
• All the good investors who are in spot trading, they hold one of their coins for long term or short term or for a specific period till they make profit and so on the value it holds.
• The chances of you making a loss in spot trading are very less and the risk is also very less because if you buy your coins and you want not to lose, then you hold your coins then you will never have to There is also no loss because its chances are very less.

Disadvantages of spot trading.

• Whenever the value of coins is falling in the market, then all the traders who are in it are not able to sell their coins because if they sell like this then they can go to a lot of loss.
• While buying coins, the price of this coin is increasing very much in the market and if you buy then the value of the coin you have at this time decreases again in the market then it can cause you a lot of loss.
• Similarly, when the price has increased a lot and all the people who are their own, they are not able to sell the assets, similarly many people also suffer losses and many people earn profit from it and some People suffer loss, those who remain they need time.

Margin Trading.

The trader in Margin trading can get the assets as his borrowing from the exchange or other platform and use it in the market.And he can use these assets to buy more coins and token in the market.Keeps remembering to use assets as they have more knowledge about the market, how will they turn on the market mode now and they generate profit from it keeping more knowledge about the market. Similarly, a trader who has more assets than him can buy more coins from their asset market. if the market does not go into their hands and there is a loss in the market, then those who take leverag in the market, they can make a big loss accordingly.

Advantages of Margin trading

• The biggest advantage of Margin Trading is that we can do trading using third party assets and we can get the most out of it, we can use third party funds.And we can increase our funds by borrowing from others.
• We can increase the profit percentage we have by borrowing assets from third party and we can increase the profit we make up to 5x 10x and 100x that we can get maximum profit.
• In margin trading, we can start with a small amount, if the investor does not want to invest a lot, then you can start your trading with a very small amount.

Disadvantages of Margin trading

• In margin trading, you can lose your funds completely, if the market does not go into your hands and the market goes in the case of loss, then you may lose.
• margin trading is very difficult for beginners b, so you need a lot of experience for this because the chances of lose are very high and can you do a lot of loss.
• And for this, it is also very important to have some reserved fund , if the market does not in your hands , then you can lose a lot from it.

Future trading

Future trading is a way of trading, in this, you invest your assets in the market according to the market and you can increase your assets in the same way by taking one leverage2x 10x and 100x if the market goes in your hand and if your market If it does not go in your hands, then you can lose in same leverage damage in the same way.Future trading is very risky, in the same way, those who go to the market new investors, future trading is not for them, that their future trading is for those who have a lot of experience.

Advantages of future trading.

• In futures trading, you can increase your assets with very little interestment very quickly and you can take huge profits.
• In futures trading, you can also buy your coins first and also sell first, for example, you can take profit in both short positions and long positions because if you understand then the market will now go in a downtrend even then You can make profit, even if the market now you go uptrend, you can still make profit.
• In futures trading you can increase your assets leverage for example if you have less funds then you can increase your funds accordingly with that leverage.

Disadvantages of future trading.

• In this, you do not have complete control your funds because you are loss or profit according to the leverage you have taken.
• Future trading is not easy for the new trader, for this you need a lot of experience and you should have a lot of knowledge about the market.
• The chances of loss in future trading are very high, so you should have a lot of experience about the futures trading.

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

Market Order

If you want to take any order instantly or take any coin instantly then you should use market order and whenever you fill your order you will complete your order within 1 second and the coins of your order will be transferred to your wallet.Market order Your order is processed at the market price.

Limit order.

Limit order is a order what time in this your order which you place on a limit for example if you want to buy a coin at $20 and its price is running at $25 then you have to place and leave your order by setting a limit of $ 20 and after that when the price of the coin you want to buy at $ 20 in the market comes to $ 20 then it will be automatically bought.

Stop limit Order.

In stop limit order, we press both stop loss and limit order together so that when market reaches stoploss, it will automatically sale and if market reaches limit order, it will automatically buy. In this we place both the orders. This order is placed at this time so that we can get maximum profit and avoid loss.This time it happens for example a coin whose price is $10 then I will buy it for $10 and when its price reaches then I will sell it price comes $9 then I will sell it on $9 gains profit.

OCO

OCO order we use at the moment for example i have bought a coin at $25 and i want it to sell automatically when the market goes to $30 because i want to make a profit of $5 If the market comes to $24, then it is sold first, then in the same order I set both the stop limit and the sell limit set in oco.In OCO order, if the market you have touches your stop limit first, then any of your coin automatically sale if you the market that is there touches the sell limit then yours coins sales that too automatic.

Stop loss take profit.

Stop loss is used so that if the market falls below the price you set, then your coins will be sold automatically and you do not have to suffer much loss, so that is why when you buy a coin And when you want to sell them, then you put a stop loss on it so that you can avoid loss.Take Profit is placed at the time when you have bought which coins and you do not want to take profit from them to a certain limit, then you set the order set at that time the Take profit is there so that you can make a specific profit. it will be automatically sold and your profit will be transferred to your wallet.

2b) How can a trader manage risk using an OCO order? (technical example needed)

OCO order is a great order by using it traders can avoid any big loss.we can sell our coins with a specific stoploss and limit so that we can avoid any major losses and in this we can make a specific profit and sell our coins specific amount at any time whenever If the market reaches the price, then automatically our coin will be sold.From this we can get an idea of ​​the price at which we have to sell our coins, if the market comes in a downtrend, we will place a specific order, if the market moves to your hands, we will place a specific order So that we can avoid any big loss and earn a good profit.Here we can place two orders at the same time, in first order, we have a particular limit one which is the profit limit, on which we want to sell our coins with profit. And in other place we can set our coins up to a specific limit as far as we want to sell them.

In screenshot i set a one OCO order. the steem price is 0.00001100btc. i set 0.00001250btc of take profit limits. and below i set both stop loss. 1st is 0.00001080 and 2nd is 0.00001075. when market is rech in any order which i place in oco order.

Open a limit order on any crypto asset with a minimum of 5USDT and explain the steps followed. (Screenshots needed from any cryptocurrency exchange).

Open your binance exchange and select your coin.

Click on trade option.

Select your coin pair check below screenshot.

I select Dot/usdt pair.

I put the price and click on buy options.

My buy order is placed.

my buy order is complete.

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
ii)Why you chose the indicator and how it suits your trading style.
iii)Indicate the exit orders. (Screenshots required).

I Choose a trx/usdt pair in cryptotrading view for technical analysis. i select a exponential moving average for analysis of trx.

As you can see in the screenshot above that the Exponential moving Average I have shared in TRX USDT so that you can get an idea about market.You can see that at the very end we can see a death zone which indicates that the market can go in reverse again or the market can be seen going up trend.Similarly we can get an idea that whenever EMA touches the lines on then market is there it can come back in reverse.If the red candles is formed below the EMA next to the sleep, it means that the EMA which is going to go downtrend will go to the market down trend and if the green candle is to go up then it means that the market cant go up chances.Above you can see that I have analyzed TRX and TRX is a very good coin because the trx have best platform you earn and as well as Trx thats why there is a good platform behind TRX which will be special Provides background and similarly who is a very good trx for long term investment from which you can earn a lot of money by doing long term investment. exponential moving average is one of the best indicator as well as the exponential moving average is a great technical analysis, using this you can predict whether the market will now go uptrend or in a downtrend. So with confidence you can guess this thing and you can also guess whether the market will now go into the golden hand or will go to the cross death.And using this indicator a lot of people set stop loss and stop limit and make profit using this indicator.

CONCLUSION

this lecture is very informative for me and i learn a lot of knowledge about spot trading margin trading and future trading and others information about trading. i am very thankful to professor @reminiscence01 for this wonderful lecture. thanks a lot professor.

@ ReGards @rasheedkamboh.