Spot market

Cryptocurrency exchange 1EX offers its clients different types of trading accounts. Traders can use them at their own discretion, depending on the strategy and the current market situation. The spot balance is considered to be the most demanded - it is with it that beginners begin their journey, and most experienced players at least partially use it in their trading.

Spot trade

The term "spot trading" appeared in traditional markets long before the creation of the first cryptocurrency. And it can be considered a basic concept for any trader who is just starting his journey in the world of finance. The English word "spot" itself translates as "on the spot."

Accordingly, a spot transaction (or spot contract) means that settlement is made as soon as possible. In the earliest stages of the development of the stock market, assets for such transactions were delivered within 1-2 days. But thanks to the advent of online trading, and especially cryptocurrency exchanges, the exchange is now instantaneous.

In spot trading, all transactions are made directly between the buyer and the seller. Each trader has the right to place his own application (order) for the purchase or sale of an asset, or to accept an application from another market participant.

In any case, such trading is subject to two important conditions:

• the one who sells the asset is its full owner until the deal is closed;
• the one who buys the asset becomes its full owner after the deal is closed

The rate at which the exchange is carried out is called the spot rate or spot price.

Another important point to consider is that traditional markets use a fiat account to buy and sell assets. While on the 1EX cryptocurrency exchange, you can directly exchange one asset for another. For example, bitcoin to litecoin.

Types of transactions on the 1EX exchange

Before trading on the spot market, it is necessary to study in detail the process of opening and closing transactions. On the 1EX exchange, several types of orders will be available to you. You can select them directly in the trading terminal interface.

Limit. The basic type of spot trade is called "Limit". It assumes that you can specify the price at which you want to buy (or sell) an asset, as well as its quantity (or a percentage of your deposit). Next, you need to click the "Buy" (or "Sell") button. After that, your application will appear in the "order book" - this is a special screener that displays all the placed orders of traders.

When there is a user who wants to buy (or sell) an asset at the price that you specified in the order, he can place his order, and the transaction will be carried out automatically. At the same time, he can indicate the amount of the transaction below the one you indicated. Then only part of your order will be extinguished, and you will still have to wait for other participants to extinguish the rest.

You can cancel the placed order at any time.

Market. The “Market” transaction type means that only the amount of the asset (or the percentage of the deposit) must be indicated in the application. After that, you just need to click the "Buy" (or "Sell") button to conduct a transaction automatically at the current market price.

At the same time, you can close several smaller limit orders from other counterparties at once with one deal. Then the value of the purchased (or sold) assets may differ slightly.

Stop Limit. A Stop Limit trade is similar to a regular Limit order and requires the same data to be entered. But it is also necessary to specify one more additional indicator "Stop" - this is the price at which a limit order will be automatically placed. That is, your order will not immediately enter the order book, but only after the current market price reaches the "Stop" value that you specified when placing the order.