How does spot trading work?

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How does spot trading work? In this article, we will learn how to trade cryptocurrency spot trading on centralized exchanges; before that, you must read our article on what the spot market is. On different exchanges like Binance, Coinbase, and OKEx, the method of spot trading is almost the same, but we have to learn spot trading on Binance. These companies are policies like transaction fees, and the graphics of their websites are slightly different, but as I said, the method of spot trading is almost the same.

How does spot trading work? At first, you will definitely sign up, or if you already have an account, then you will sign in, then you will see a tab in the main menu bar on which you will write the trade option. When you click on it, the first option to appear is BINANCE CONVERT.

BINANCE Convert

We are learning how does spot trading work? It is a straightforward way to trade, and that is Binance convert. First, we learn to convert; as soon as you click on Main Menu Bar, the page that opens in front of you, you will see two tabs in the front of; you; one will be on the market, and the other will be off-limit. On the right side, the details of all the coins will be listed here from Binance.

Firstly, please search for the coin and then click on it, and after that, click on the second coin on the second search bar located down at the page you want to convert. And finally, click on Binance Preview, and the number of coins will show according to the current market price; if you click within 10 seconds, you will make your first trade successfully.

At the exact location, the second option is that limit, which means that whatever the price of any coin is running on the market at that time, but after doing the research, if you think that the price of a currency may reduce and you want to get some profit. So, on the right side of the page, you enter your desired price, and whenever the price reaches the limit you set, and then automatically, your coin will be converted to its price.

The most significant difference how does spot trading work? We have in the market and limit is that any coin, when you convert to the market, it is converted to the market price which is currently going on in the market and when you can put the cost of your coin after analyzing if it hit or may not to its price.

Spot Market

The second step is how does spot trading work? The trade, the spot market, is as soon as you click on it on the right side of the page that will open in front of you, you will see the BTC with the pair USDT by default on that page. And on the right side, you will see the search bar option, where you can search for any of the coins you want. But we are currently studying and analyzing BTC; we will see the price at the top and very clearly here.

Graph

After that, we will observe the coin price, which, as you can see, and the price fluctuation price graph of the coin, where we can see that there are two types of candles, one indicates green, and the other indicates red. Here green candle shows the price increases in the coin, and the red candle shows us the price’s decrease.

Time Limit Frame

There are also time limit frames; you will click on the time limit frame, including many options like 1s, 5m, 15m, one h, four h, 1d, 1w, and 1m, You can select any of your time frames by making a trim look, and the graph changes their candles option according to time limit frame.

Market, limit, stop-limit

We will learn the market, limit, and stop-limit by answering this question how does spot trading work? A little further, there are three options one is market, the second is limit, and the third one is stop-limit. Those with USDT or Other Coins can trade using these three options mentioned above. If you want to avoid taking the risk and putting the long-term trade, then whatever the market price is running, you will buy the coin so that you will click on the market.

Order and Open Trade History

After that, you can see the history of your trades over there; if you are not buying or selling anything, it looks empty. If you have purchased something before or if you have to sell something, then their history will show according to dates by default.