I have a few questions about trading
1: what is the different between spot trading and futures trading.
2: between Stop Limit or Stop Loss and
OCO or order cancel order which is the safest for trading.
3: At what level is overleveraging.
4: between spot trading and futures trading which is highly risk and highly reward that uses leverages.
1. Spot trading is a basic trade for buying and selling. While trading futures, you can use leverage to borrow additional capital from the market.
2. Stop Limit is the safest way to trade because you can anticipate the worst that can happen based on where the market will move.
3. If your capital is small but you are forced to use higher leverage, it will risk losing because your profits and losses will be more pronounced.
4. In my opinion, spot trading is more profitable than leverage because you just wait for the price to move in the direction you want. While futures trading requires special skills to predict where the market will move so you can close your trade immediately. Futures trading can give you more risk than spot trading and it is not recommended for those who do not have skills to use future trading.