Learn the mechanics of spot and derivatives markets, orders, leverage, liquidation, slippage and risk. Trading is not a guaranteed-income system.
Spot trading means buying or selling an asset for immediate settlement under the platform’s rules. You generally own the purchased asset on a custodial or self-custody platform depending on the route.
A market order prioritizes execution at available prices. The final price can vary across the order’s fills.
A limit order specifies a maximum buy price or minimum sell price, depending on side. It may not fill.
The spread is the gap between available buy and sell prices. Liquidity affects how much size can trade without moving the price.
Derivatives allow exposure to price movements without the same structure as spot ownership. Leverage magnifies both gains and losses.
A leveraged position can be forcibly closed when losses and margin rules reach the platform’s liquidation conditions.
Slippage is the difference between expected and actual execution. It can arise from volatility, liquidity, routing or transaction delay.
Position size determines how much capital is exposed to a trade. Risk should be considered before entry, not after a loss.
Useful controls include predefined invalidation levels, maximum loss limits, diversification of operational risk and avoiding oversized leverage.
Markets are uncertain. Backtests can overfit, fees can erase edge, and execution can differ from a chart.
Before moving money, connecting a wallet, trusting a claim or signing a transaction, slow down. Identify the exact asset, network, contract, source, permissions and risks.