What Is Spot Trading?
Jun 28, 2021
There are several different types of trading you can use to further your trading journey. Using or testing out different types of trading can help you to:
- Extend your trading knowledge: The more you know about the different types of trading, the better equipped you are to make effective, profitable trades.
- Expand your trading portfolio:Being able to trade in different ways can help you to expand your trading portfolio.
- Grow your trading profits: By enhancing your exposure to different types of trading, you may boost your earnings from trading, and grow your trading profits.
So what is Spot Trading?
While many traders use a mixture of trading approaches and types, Spot Trading is particularly popular with day traders. The practice of Spot Trading hinges on the current market rate or price of a particular commodity, financial instrument, or currency. Spot Trading is quite popular in cryptocurrency markets, as it is a relatively affordable form of trading. Spot Trading offers cost-effective ways to open positions. Spot Trading focuses more on short-term positions, with low spreads. Spot Trading entails an immediate, or short-term delivery of the commodity, financial instrument, or currency, to the trader.
What is the Spot Price?
The Spot Price is the current market rate or price of a particular commodity, financial instrument, or currency. The Spot Price represents the immediate price or market rate of a particular commodity, financial instrument, or currency. The Spot Price is also known as the Spot Rate.
What is a Spot Market?
A Spot Market focuses only on Spot Trading. Within a Spot Market, financial instruments, commodities, or currency, are traded for immediate delivery.
What’s the opposite of Spot Trading?
Spot Trading is considered to be the alternative type of trading to Forward or Futures Trade. Spot Trading, because of its immediate delivery, and using the Spot Price as the linchpin for the trade, is considered short-term trading. Futures and Forward trading are considered to be longer-term trading practices.
Spot Trading in Cryptocurrency
Spot Trading is popular amongst cryptocurrency traders. Cryptocurrency traders use exchanges and markets to trade cryptocurrencies, including the likes of Bitcoin. Spot Trading is popular amongst crypto traders, because of the immediate execution of trades. Spot Trading is also popular in crypto markets, as these markets are open 24/7. Full-time availability of the crypto markets mean that Spot Traders can take advantage of preferred crypto prices.
MEX Digital Spot Trading
At MEX Digital, your Spot Trading experienced is enhanced by:
- Simplicity: MEX Digital is simple to use, and makes executing Spot Trades simple. MEX Digital enables Spot Traders to buy Bitcoin online, by paying in US Dollars, while using a credit card, debit card, or bank transfer.
- Compliance: MEX Digital is a highly regulated Spot Cryptocurrency Exchange. MEX Digital is fully regulated by the Australian Securities Investment Commission (ASIC) and is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) for trading digital assets as a Digital Currency Exchange (DCE).
- Security: Backed by world-class security, MEX Digital enables you to execute Spot Trades with confidence. Crypto wallets are monitored around the clock to ensure excellent security and compliance at every turn.
- Cost-Effectiveness: MEX Digital offers Spot Traders competitive trading fees and spreads. It’s true: MEX Digital offers some of the lowest fees in the crypto markets.
- Liquidity: MEX Digital gives Spot Traders direct access to the most liquid cryptocurrency market on the planet.
- Opportunities: MEX Digital enables Spot Traders the opportunity to extend their trading portfolio, with 15+ trading pairs available.
- Top Cryptocurrencies: MEX Digital enables Spot Traders to trade in Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Litecoin (LTC), and more.
- Always-On Assistance: MEX Digital provides Spot Traders with 24/7 Customer Support.
Start your Spot Trading journey with MEX Digital. Remember, proper diligence and sound judgement should be used in evaluating the risks associated with these activities.
(All trading involves risk. Losses can exceed deposits.)