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Spottrading

TradeCityPro | ONDOUSDT Good Opportunity to Buy👋 Welcome to TradeCityPro Channel! Let's go together to analyze and review one of my favorite projects that I plan to put in my spot portfolio and find its entry points together 🌐 Overview Bitcoin Before starting the analysis, I want to remind you again that we moved the Bitcoin analysis section from the analysis section to a separate analysis at your request, so that we can discuss the status of Bitcoin in more detail every day and analyze its charts and dominances together. This is the general analysis of Bitcoin dominance, which we promised you in the analysis to analyze separately and analyze it for you in longer time frames. 📊 Weekly Timeframe In the weekly timeframe, it is one of the coins that has still managed to hold itself bullish and in the declines, its recent corrections have not yet fallen below the support of 1.2110, which is a good sign. Also, it has corrected only two weeks after its listing and after the breakdown of the listed price, it has experienced a good move and Sharpe, which is also a good sign for this coin and this event has also caused a trend to form on this coin. This upward trend, which we recently reacted to again, can help us a lot in the future, both in terms of reaction to it and in case of a breakdown of the trend line itself and any of the triggers on the chart can be a timely exit trigger for us in relation to the time of the breakdown. To re-enter, we ourselves entered with a breakdown of 0.8456 and bought. For now, we continue to hold it. Our more reliable trigger is the breakdown of 2.0675. There is a risk trigger, let's also set a stop-buy with our previous weekly candle shadow and make our purchase with a stop loss of 0.8456 📅 Daily Timeframe In the daily time frame, we are really in a better situation than the rest of the altcoins and we are fluctuating at a higher bottom than the rest of them, which still encourages me to be more bullish The candle a few days ago that caused a drop in all altcoins led to a green candle and strong buyers' pressure in this coin, and it did not care about the corrections of a few days and it is in its range box I myself will enter after the 1.6110 break and it is likely that the 2.0833 break will be sharp, so I will try to have a long futures position trigger or buy with this level, and with the ath trigger failure, I will simply raise my entry point and do nothing below 0.5683 for now I don't give 📝 Final Thoughts Stay calm, trade wisely, and let's capture the market's best opportunities! This analysis reflects our opinions and is not financial advice. Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
Long
by tradecitypro
8
What Is Spot Trading?What Is Spot Trading? How It Works, Unique Features, and Comparison Spot trading is a fundamental method of buying and selling financial instruments for immediate delivery at the current market price. This article delves into the key aspects of spot trading, comparing it to other trading methods and explaining its significance for traders. Spot Trading: An Overview So, what is spot trading? Spot trading refers to the buying and selling of financial instruments like currencies, commodities, stocks, cryptocurrencies* or other assets for immediate delivery. This means that buyers receive physical securities for cash. In practice, these assets are delivered within two business days, known as T+2 settlement (as of May 2024, many US assets are now settled within one business day). Unlike futures or options, where contracts settle at a future date, spot trading is based on the current market price, known as the spot price. This real-time transaction process is why it's often called "on-the-spot" trading. These markets are highly liquid, especially in sectors like forex, where the daily trading volume exceeds $6.6 trillion, making it the largest and most active market globally. The transparency and immediacy of spot trading appeal to traders who prefer straightforward transactions without the complexities of contracts tied to future dates. How Does Spot Trading Work? Here's a detailed look at how spot trading works. 1. The Transaction Process The buyer and seller agree to exchange an asset at the current market price. It is determined by real-time supply and demand dynamics in the marketplace. Once the agreement is made, the trade is executed almost immediately, with the settlement typically occurring within a specified timeframe. 2. Participants The market includes a wide variety of participants, ranging from individual retail traders to large institutional investors like banks and hedge funds. These participants interact in centralised exchanges (like the New York Stock Exchange for equities) and over-the-counter (OTC) markets, where trades are conducted directly between two parties without a central exchange. For instance, spot forex trading occurs in OTC markets. 3. Price Discovery Price discovery is the process by which the marketplace determines the spot price through the continuous interaction of buy and sell orders. As these orders are matched, the spot price fluctuates in real-time, reflecting the collective assessment of an asset's current value. High liquidity potentially ensures that prices remain competitive and reflect the latest available information​. Some market participants use spot algorithmic trading. Spot algo trading involves using complex algorithms to exploit opportunities that may be uniquely found in spot markets. 4. Leverage and Margin While this type of trading generally involves the full upfront payment for the asset, some markets allow for margin trading. This means traders can borrow funds to open larger positions than their available capital would normally allow. However, using leverage increases both potential returns and risks, as losses can exceed the initial investment​. 5. Execution Venues Spot transactions can occur on exchanges or in OTC venues. On exchanges, trades are executed through an order book, which matches buy and sell orders. Spot trading in crypto* works with the same principle, matching buyers and sellers of a particular cryptocurrency*. In contrast, OTC trades are negotiated directly between parties, often offering more flexibility but sometimes less transparency​. Key Features of Spot Trading Spot trading is characterised by several distinct features that make it a popular choice among traders across various financial markets. - Immediate Settlement: Spot trading involves the purchase or sale of assets for immediate delivery. While "immediate" often means within two business days (T+2), in some cases, such as the forex market, transactions settle as quickly as the next business day (T+1). This feature contrasts sharply with futures or forward contracts, which settle at a predetermined date in the future​. - Real-Time Pricing: Spot trades are executed at the current market price, which reflects the most recent value at which buyers and sellers agree to buy and sell the asset. Because of this, spot prices are highly responsive to market conditions, frequently updating to reflect supply and demand. - High Liquidity: These markets, particularly forex and commodities, are known for their high liquidity. This liquidity means that trades can potentially be executed quickly with minimal slippage​. - Simplicity and Transparency: Spot trading is straightforward, as it involves no complex contracts or future obligations. The transparency in pricing—where participants can see real-time changes—adds to the appeal, especially for those who value clear and direct transactions​. - Global Accessibility: Spot trading is accessible across multiple platforms of centralised exchanges and OTC venues. This accessibility allows a diverse range of participants, from retail traders to institutional investors, to engage in the market​. Spot Trading vs Contracts for Difference Although spot trading has many advantages, many retail traders prefer to interact with Contracts for Difference (CFDs). CFDs are derivatives that allow traders to take advantage of movements in the underlying asset’s price without owning the assets. Ownership vs Speculation In a spot transaction, traders buy and sell the actual underlying assets, such as currencies, commodities, or stocks, and take ownership immediately or within a short settlement period. For instance, spot trading of gold, currency, or oil means actually taking delivery of the asset, which may be difficult as traders need to store it somewhere. Conversely, CFDs are derivative instruments that allow traders to speculate on price movements without owning the underlying asset. This means that with CFDs, traders can potentially take advantage of both rising and falling markets without needing to manage the actual delivery of assets​. Leverage and Margin CFDs offer leverage, allowing traders to open positions much larger than their initial investment. Although this increases potential returns, it also magnifies the risk of losses. Spot trading, on the other hand, typically requires full payment for the asset upfront, which means no leverage is used unless the trade is conducted on margin, which is less common. Costs In a spot transaction, traders usually face costs like spreads, commissions, transaction fees, and sometimes exchange fees. CFD trading often includes spreads, commissions, and overnight financing charges for positions held beyond a single trading day. These costs can impact the overall effectiveness of long-term CFD trades​. Market Access and Flexibility CFDs offer access to a wide range of assets, including shares, indices, commodities, and forex, often from a single platform. This flexibility is a key advantage for CFD traders, enabling them to diversify and manage their portfolios efficiently. Spot trading, while straightforward, may require different accounts or platforms to trade across various asset classes. Spot trading and Contracts for Difference (CFDs) are two distinct methods for engaging in financial markets, each with its own characteristics and advantages. If you prefer CFD trading, head over to FXOpen to explore more than 700 assets. The Bottom Line Spot trading is a fundamental aspect of financial markets, offering transparency, immediacy, and direct access to real-time pricing. Understanding its mechanics can empower traders to navigate markets effectively. However, if you don’t want to deal with delivery difficulties spot trading bears, start trading CFDs. Consider opening an FXOpen account today and trade with a broker you can trust. Enjoy low-cost and high-speed trading of many assets via CFDs. FAQ What Does Spot Mean in Trading? Spot trading meaning refers to the immediate purchase or sale of a financial instrument at the current market price, known as the spot price, for delivery. Spot transactions typically settle within one or two business days (T+1 or T+2)​. What Is the Spot Market? The spot market is a venue for trading assets with immediate delivery. Spot market transactions are settled "on the spot" at the current market price. Here, you can trade various assets such as currencies, commodities, and shares. What Is an Example of a Spot Transaction? An example of a spot transaction is the purchase of a currency in the forex market. If you buy EUR/USD at the spot exchange rate, the trade will typically settle within two business days (T+2), meaning the euros will be delivered to your account within that timeframe​. What Is a Spot Contract? A spot contract is an agreement to buy or sell an asset at the current market price with immediate delivery. Unlike futures contracts, which specify a later delivery date, spot contracts are settled quickly within a specific timeframe. *Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
TradeCityPro | DOTUSDT Weekly Range Boxes of Altcoins👋 Welcome to the TradeCityPro channel! Let’s analyze DOT, one of the popular cryptocurrencies, and identify its potential entry points. 🌐 Overview Bitcoin Before diving into the DOT analysis, let's check Bitcoin on the one-hour timeframe. Due to today's NFP news, Bitcoin has experienced volatility and once again got rejected from the critical $100,000 psychological resistance. This rejection has led to selling pressure, pushing Bitcoin back toward the 96,445 support, which now has a higher probability of breaking due to this rejection. Additionally, Bitcoin dominance remains within the defined range, showing a slight upward bias. If we see a correction, altcoins are likely to experience further declines, and I don't expect any major movements until the end of the week. 🕵️‍♂️ Previous Analysis In our previous DOT analysis, we expected a decline after breaking $6.554, leading to a test of the daily range high. However, recent market conditions caused DOT to wick down as low as $3.743, which is its strongest support level. 📊 Weekly Timeframe DOT remains inside its weekly range, and despite its 170% range, it is still considered ranging rather than trending. I've previously discussed "money traps", and this applies here too. You can buy at $3.719, but without momentum, your capital could remain stuck in this asset for a long time. Who knows—could DOT be the next LUNA? Considering these factors, I prefer either a strong reaction at $3.719 or a breakout above $10.309 before entering a position. I’d rather focus on coins that confirm a breakout before entering**, like Jasmy, which recently provided a 400% gain. For exiting, if $3.719 support breaks, it's better to accept the loss and exit. Later, if a buy signal reappears, you can re-enter using the same USDT amount, instead of holding and losing more DOT. 📈 Daily Timeframe On the daily timeframe, DOT faced a strong rejection at $10.725, forming consecutive lower highs and lower lows. However, recent selling pressure appears to be weakening, and we are currently sitting on the $4.626 support. Additionally, a trendline is forming, and if DOT rejects from it in the future, this would indicate continued bearish momentum, providing an opportunity to keep short positions open from higher levels. I personally believe DOT may enter a range for some time, allowing traders who made emotional decisions due to FOMO and market volatility to reassess. For now, I expect the $3.719 support to hold. That doesn’t mean we should buy immediately. Our strategy is clear , buy after a breakout above $10.725 , Wait for an accumulation range to form or Look for a sharp upward move, retest a key trigger level, and confirm a breakout before entering.
by tradecitypro
10
Optimizing Returns: Position Sizing, Leverage and Spot TradingWhomever told you "Size doesn't matter" in trading, has never had a big "size" and probably just borrowed someone elses. In the dynamic landscape of trading, where fortunes can be made and lost in the blink of an eye, various strategies vie for attention. Position sizing, leverage trading, and spot trading each offer distinct approaches to navigating the volatile markets. Understanding the nuances and risks associated with each is essential for traders seeking to optimize their returns while managing risk effectively. Position Sizing: A Prudent Approach Position sizing is a strategy that emphasizes determining the appropriate amount of capital to allocate to a trade relative to one's overall portfolio. Rather than relying on borrowed funds to amplify gains, position sizing focuses on prudent allocation and risk management. Consider this scenario: Here is something that happened to me recently: Over a week ago I invested just $80 in #Bitcoin and the price moved 12% since My return: $11.75 A few days ago I invested $1,000 in Bitcoin and the price moved only 3% My return: +$26.00 Despite the smaller percentage gain in the first scenario, the return on investment is substantially lower due to the smaller position size. This highlights a fundamental principle: the size of one's position significantly impacts the magnitude of returns. While the absolute gains may seem modest in the examples provided, they demonstrate the potential for consistent growth without the need for excessive risk-taking. Leverage Trading: Temptation and Risk Leverage trading offers the allure of magnified returns by allowing traders to control positions larger than their initial capital. However, this comes with inherent risks, including fees associated with borrowing and the potential for significant losses. Many traders are drawn to leverage trading in pursuit of exponential gains. Yet, they often overlook the substantial risks involved. Despite the promise of greater returns, the reality is that losses can mount swiftly, eroding profits and even leading to negative balances. Furthermore, the psychological toll of leverage trading can be significant. Constantly chasing high-risk, high-reward opportunities can result in emotional exhaustion and impulsive decision-making, fueling a cycle of loss and frustration. Spot Trading: Proceed with Caution Spot trading stands as a stalwart option for those seeking to invest without the complexities of leverage. However, even in this seemingly straightforward arena, there are nuances to be wary of, particularly when it comes to leveraging spot positions. Spot trading entails purchasing and holding an asset with the expectation of long-term appreciation. Unlike leverage trading, where borrowed funds amplify gains and losses, spot trading relies solely on the investor's own capital. This approach is often favored for its simplicity and reduced risk exposure. However, the temptation to employ leverage in spot trading can lead to unforeseen consequences. Leveraging spot positions increases the potential for losses, as the borrowed funds magnify both gains and losses. Moreover, the dynamics of unrealized and realized profit and loss (PnL) can confound inexperienced traders. Finding Balance: The Art of Risk Management The key to successful trading lies in finding the balance between risk and reward. While leverage trading offers the potential for rapid growth, it requires a disciplined approach to risk management. Instead of fixating on borrowed size, traders should focus on optimizing position size relative to their available capital. Understanding the interplay between unrealized and realized PnL is crucial for making informed trading decisions in both leverage and spot trading. By exercising prudence and restraint, traders can optimize their returns while safeguarding against undue exposure to market volatility. In the end, what truly matters is finding a harmonious balance between these strategies. Whether it's careful position sizing, navigating the highs and lows of leverage trading, or sticking to the grounded principles of spot trading, it's all about embracing a method that resonates with your risk tolerance and goals. With a keen understanding of the intricacies involved and a disciplined mindset guiding your every move, you'll be well-equipped to chart your course through the markets and seize every opportunity that comes your way.
by CoffeeshopCrypto
ICP at lower price#ICP/USDT $ICP broke down from lower line of long term falling wedge pattern. 🐮 holding the parallel trend line of lower line as support can increase price to lower line of wedge again, and break out this descending resistance will increase price toward resistance zone between $15 and $17.5. break out from resistance of $23 can pump price to moon. 🐻 rejection from lower line of wedge and break down current descending support will drop price to lower supports around $3 and lower.
Long
by parissap
DOT/USDT by CryptoTradersWWDOT pushed strongly from a daily timeframe support of $22.80 - $23.50, breaking the fundamental level. Price broke through the resistance line, indicating that the overall trend is bullish. The price has now touched a minor resistance level of $29.60 - $30.0. It appears to be in fantastic shape to begin accumulating now. A fair price range for that is $25 to $28. Here's where good money management comes in handy. If DOT follows this plan and goes to take that resistance, the following lines would be the trend I expect and in that case I will make some updates on the chart. <———————————————> Follow us on our socials for more! Thanks and happy trading :)
Long
by CryptoTradersWW
7