CoinEx | A Beginner’s Guide: The Difference Between Spot Trading and Contract Trading

I. Spot trading, the direct exchange between cryptocurrencies

In spot trading, transactions are matched based on the priority of price and time to directly realize the exchange between cryptocurrencies.

II. Contract trading, financial derivatives in the crypto market

Compared to spot trading, which follows the principle of conventional trades (buy low & sell high), contract trading refers to a model in which buyers and sellers trade based on an agreement that specifies that a certain amount of an asset will be bought/sold at the prescribed price on the agreed date. Contracts can be divided into conventional delivery contracts and futures contracts according to the delivery model. The primary difference between the two is that a delivery contract has a fixed delivery date, while a futures contract does not. In the crypto market, contracts are financial derivatives that are not covered by the spot market. Instead, there are independent derivatives markets where crypto contracts are traded.



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