Hello Steemian's hope you guys are doing well. This is my homework task on "Spot trading $ Margin trading" for steemit crypto academy by @besticofinder.

EXPLANATION OF SPOT TRADING AND MARGIN TRADING:

Spot Trading:

Spot trading may be described as the purchasing or selling the assets, product, foreign currency, or any other financial stuff on a defined spot date, for quick delivery. Spot trading is also known as Spot Transaction. Spot transaction usually happens when two banking days after the selling date of the foreign exchange sector which we can say (T+2) for the exchanged currency pair.

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The spot price is considered the present price of a financial commodity. That is the price at which the instrument may be bought or traded instantly by a trader. Dealers and purchaser post their buy and deal orders on the exchange to build the spot price.The spot price will adjust in a couple of moments if the marketplace is liquid, when existing orders are fulfilled and new orders join the marketplace. Interchange Spot Contracts, usually specified for distribution between 2 business days, are the most common type, whereas most separate money instruments prefer consecutive business days.

Types of Spot Trading:

There are two types of spot trading:

1. Over-the-counter
2. Market exchange
   

   1) Over-the-counter:

   It is a platform where producers and consumers meet to exchange without the need for a third-party supervisor to manage trade through such a reciprocal bilateral agreement.
   

   1) Market exchange:

   It is a structured platform where financial assets are offered and exchanged by producers and consumers.

Margin Trading:

A margin account, like a portfolio, mutual fund or bond, isn't a form of investment security. It's capital you're borrowing to spend in a specific defence. For the loan, the bought stock acts as collateral. The key reason behind borrowing cash is to obtain more venture capital and, by default, the opportunity for more gains.

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The lender owes interest in margin trading before they can redeem their lent balance on exchanges. The cost of borrowing available to the investor is hourly or monthly.
In margin trading, extra profit is made, but if the forecast bad happens in your position in the wrong way, then maybe the risk factor rises.

ADVANTAGES AND DISADVANTAGES OF SPOT AND MARGIN TRADING:

Advantage of Spot Trading:

1. Normally, spot markets need less money. In comparison, the minimum commitment is typically substantial in the futures market.
2. There is greater transparency in rates. You could use the price of earlier today to make a purchase now.
3. You can do your spot transaction in a safe and consistent way from Coinbazar.

Disadvantage of Spot Trading:

In certain cases, risk control may be a disaster of its own. Since your portfolio has a small balance, and you can't take advantage of good trading possibilities. You will make a lot of profit from it by making $3500.

Advantage of Margin Trading:

1. For successful margin transaction you must consider wisely invest, borrow for the short term only, borrow less than the limit approved.
2. You will sell on a crypto exchange as long as you spend.
3. A great trade will produce you a lot of profits at the correct time.

Disadvantage of Margin Trading:

1. Risk on margin transaction is the losses Enhanced, margin Call and liquidation.
2. Strong risk relative to spot transaction.
3. You will lose almost as much as the money you have, dissimilar to spot trading.

Thank you for reading the post and I hope that you will get more information and knowledge for Spot And Margin Trading after reading this post.

Special Mention:

@besticofinder
@steemcurator01
@steemcurator02

Regards,
@syedfarhan