1. What is spot trading?

Spot trading is a method of buying and selling financial instruments such as cryptocurrencies, stocks, or commodities for immediate delivery and settlement. This type of trading occurs on the "spot" market, where transactions are executed promptly at the current market price. Here''s a more detailed breakdown of spot trading:

2. How Spot Trading Works?

1. Choose a Trading Pair: Select the trading pair you want to trade, such as BTC/USDT (Bitcoin to Tether) or ETH/USDT (Ethereum to Tether).
2. Place an Order: There are different types of orders you can place on a spot market:
3. Market Order: Buy or sell immediately at the current market price.
4. Limit Order: Buy or sell at a specified price or better. This order will only be executed if the market reaches the specified price.
5. Execution: Once the order is placed, it will be matched with a corresponding buy or sell order in the market. Market orders are executed immediately, while limit orders will only be executed when the market reaches the specified price.
6. Settlement: After the order is executed, the transaction is settled instantly. The buyer receives the asset, and the seller receives the payment.