What is Spot Trading?
Spot trading is a method of trading buying or selling by exchanging one coin for another at the price at the time of your transaction. You can make a profit by buying when the price is low then selling after the coin price goes up
What is Spot Wallet?
Spot Wallet is a wallet for storing coins and tokens used in Spot trading. When you want to buy or sell cryptocurrencies on the exchange, you must first have the coin/token in your Spot wallet.
After logging in, go to “Wallet” and select “Fiat and Spot”
You can see your total balance in your Spot wallet here. You can also perform transactions related to the Spot wallet, such as depositing coins, withdrawing coins, transferring coins, and so on.
How to trade Spot on Binance exchange?
After successfully logging in, navigate to the “Trade” area as below:
To trade Spot, you can access “Classic” or “Advanced”
Classic : Simple interface, easy to use.
Advanced: Where users can customize the layout of the interface
For ease of use for newbies, we should visit “Classic” to trade. After accessing the “Classic” section, we will have the interface as below:
We will briefly go over Spot’s trading interface as follows:
1: Shows currently trading coin pairs.
2: Show pending buy and sell orders on the exchange. Red is the pending price and volume. Blue is the price and volume waiting to buy
3: Show a price chart where we can do technical analysis
4: Area where you can place orders to buy or sell Spot (Limit, Market, Stop-limit, and OCO)
5: Area where you can search for trading pairs to buy or sell.
6: Consolidation area of successfully traded orders
7: Area showing price movement and trading volume within 24 hours
To be able to buy or sell coins/tokens, you will go to section 4 as below.
Spot trading includes 4 orders as follows: Limit, Market, Stop-limit, and OCO (One Cancels The Other).
Instructions for trading each order:
- Limit: An order to buy or sell a coin at a price you want. After entering the order, wait for the price to adjust to the price you set and automatically execute the order.
Step 1: In the order placement area, select “Limit”,
Step 2: You enter the price and number of coins/tokens that you want to buy or sell.
Step 3: You click “Buy” or “Sell” , and the order will be pending until the order is matched.
For example, the current price of 1 BTC is 46000 USDT. You want to order 1 BTC for 45000 USDT. Or you want to sell 1 BTC for 50000 USDT. You just need to wait for the price of BTC to increase or decrease to that level, the order will be activated and executed.
- Market: An order to buy or sell a coin quickly at the current market price without having to set a price.
You just need to enter the number of coins or the amount of USDT you want to buy or sell, then press “buy” or “sell” and the buy order will be executed immediately..
Step 1: In the order placement area, select “Market”
Step 2: Enter the amount of coin/token you want to buy or sell
Step 3: Click “Buy” or “Sell”, then the order will be matched immediately. This order can help you buy or sell immediately, but it will slip if the trade is not enough.
For example, the current price of 1 BTC is 46000 USDT. You want to buy or sell 1 BTC with the “Market” order, then the buy or sell order will be matched immediately at 1 BTC price of 46000 USDT
- Stop-Limit: An order to buy or sell a coin when the price rises or falls to a “Stop” price, a “Limit” buy or sell order will be activated.
Step 1: In the order placement area, select “Stop-Limit”
Step 2: Enter the coin/token price in the “Stop” and “Limit” boxes and enter the quantity you want to buy or sell.
Step 3: Click “Buy” or “Sell” and wait for order matching.
– Buy: For example, the current price of 1 BTC is 46000 USDT. You place a buy order as shown below. You will order 1 BTC with a “Stop” price of 45000 USDT and set a “Limit” price of 40000 USDT. That is, when the market price of BTC drops from 46000 USDT to 45000 USDT, an order to buy 1 BTC at 40000 USDT will be triggered.
– Sell: For example, the current price of 1 BTC is 46000 USDT. You place a sell order as shown below. You will place an order to sell 1 BTC with a “Stop” price of 40000 USDT, and a “Limit” price of 39900 USDT. That is, when the market price of BTC drops from 46000 to 40000, there will be an order to trigger the sale of BTC at 39900 USDT.
- OCO : (One Cancels the Other) is an order to cancel the remaining order. This command allows the user to place two orders at the same time. In essence, OCO is a combination of Limit orders and Stop-limit orders, when one order is activated, the other will automatically cancel.
Step 1: In the order placement area, select “OCO”
Step 2: Enter the coin/token price in the “Price”, “Stop” & “Limit” boxes and enter the quantity you want to buy or sell.
Step 3: Click “Buy” or “Sell” and wait for order matching.
– Buy: For example, the current price of 1 BTC is 46000 USDT, you place an order to buy 1 BTC as shown below. At this point, if the BTC price drops to 40000 USDT, your buy order will be activated and executed. Or if the price of BTC goes up to 46000 USDT there will be a buy trigger at 46050 USDT. If one of the two orders is activated, the other will be cancelled.
– Sell: For example, the current price of 1 BTC is 46000 USDT, you place an order to sell 1 BTC as shown below. Now if BTC price rises to 50000 USDT, your sell order will be activated and executed. At the same time, if the BTC price drops to 40000 USDT, there will be an order to trigger a sell at 39950 USDT. If one of the two orders is activated, the other will be cancelled.
Conclude
We’ve given you specific instructions on how to trade Spot above. You must have a thorough understanding of Spot trading orders in order to trade effectively, maximizing profits while minimizing risks.
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