Source

Introduction

My fellow steemians,
It's with outmost gratitude that I write on these noble topic, I must sincerely appreciate our very own professor in the person of @besticofinder, sir you have really been a mentor to me at the course of these programs, I have really learnt a whole lot from you these past weeks.

Today, I will be discussing another important Homework on trading. Please feel free to follow me as we journey through these together. I seriously recommend that before you go further with reading these airticle of mine, you should also consider reading from the professor himself.

What Is a Spot Trade?

If you are still with me, I believe you have gotten an insight about they topic am about to elaborate on i.e I am believing you have read from the professor @besticofinder as the link is just place above for those who have not done that, please make effort to do so because it will really help as you read through mine.

With that been said, I will like to give us a brief explanation on what spot trade is all about. A spot trade which can also be called spot transaction can be defined as the purchase or sale of foreign currency, financial instrument or commodity for immediate delivery on a specified spot date.

Its Important to mention here that in foreign exchange spot trade (Forex), the exchange rate on which the transaction is based is referred to as the spot exchange rate. Morealso, Forex uses electronic to trade around the world. Forex or spot foreign exchange market is the world largest market with more than $5 trillion trade going on daily basis.

Advantages of spot trade

• Spot traders finds it easier to execute spot market contract at all times.
• Spot trader find a better deal anytime they are not satisfied with they price.

Disadvantages of Spot trade

• Trading here is also very risky
• Lack of proper planning

What Is a Margin Trade?

Margin trading can be seen as a method in which we can trade assets using the funds made available by the third party. Large amount of capital are accessed by traders in margin trade. Also, margin trade help traders to gain large amount of profit from every successful transaction. Nevertheless, margin trading is also used in stock, commodity, and cryptocurrency markets.

Whenever a Margin trade is initiated, the trader is given the required commitment of a percentage of the total order value.

Advantages of margin trade

There are various advantages of margin trade but for the want of time I will be discussing just but a few.

• Margin trade results to large profits
• Margin trade is also useful in diversification
• Margin account makes it easier for traders to trade with shifting a large amount to their account.

Disadvantages of margin trade

• The trading method here has a very high risk of looses.
• Any small drop in market price will affect the trader greatly.

Conclusion

I want to sincerely appreciate they professor for these wonderful lecture it has really given me an opportunity to make more research and I have been able to update my knowledge on Trading in Blockchain.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@besticofinder

Thanks for reading...