Trading Basics topic

I am in the same position I have several coins and HODle them for 3 to 4 month but still I do not know how to exit go back to the FIAT, I just want to be ready some one said that when ever the time comes to trade for USDC a Stable coin or something like that. But still I do want to learn how to set up the Risk/Reward stop loss to be able to trade just a few shatoshies at the beginning maybe $20 US dollars for many, many, times,… with the typical 1%risk to 2% Reward. Look for it in YouTube the one to two Risk Reward rule. I will do it when I know it is a well set up plan,… until then, I and sure that I know what is going on. Do not RUSH The market will alway be here and I know you can either profit from accumulating in the Bear or Profiting in the Bull side even when it runs side ways. well Julie66 Wish you Great trades the BEST to get that free $$$ lost of it,… and remember do not rush.

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Hi,
I am trading on Binance exchange now. You can find youtube tutorials and it will explain, limit, market and stop loss. It makes sense when you use a proper exchange and not a beginner site.

When you sell, you sell to stable coin not fiat? Does it matter? Same difference?

Thank you. Good luck to you also.

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Hi Julie,

Great news, glad you found a solution. For trading, as it’s generally a short-term time frame, I think Binance is ok for now.

I don’t personally use Binance, but I believe transactions are in Tether, not fiat. For now, it’s a popular exchange. If regulation comes, perhaps Tether will be in the crosshairs and the exchange’s popularity decreases, but that’s a whole different topic of conversation.

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Hi Chris,

Thank you for the clarification on Binance. I was wondering about that actually.

I am exploring different exchanges, now getting to know the defi space through the DeFI 101 course. I was using Binance for alt coins. There are so many projects and so much to learn.

What do you think of crypto.com?

Thanks again!

  1. What is a trading exchange?
    An exchange is a marketplace where buyers and sellers meet to trade commodities, derivatives and other financial instruments.

  2. What do brokers do?
    Brokers are intermediaries who manage and execute the buying and selling of given financial instruments. The reason people need a broker is that securities exchanges only accept orders from licensed individuals or individuals or firms that are members of the given exchange.

  3. What is margin trading?
    Margin trading is borrowing funds from a third party and using them to trade on platforms. The difference to normal trading being that you can trade with greater amounts of money thus leveraging your positions.

  4. What is the difference between Bid and Offer?
    A bid is the price which a buyer is willing to pay for any given asset, an offer is the price which a seller is willing to accept to sell their asset to the buyer.

  5. What is the leverage?
    Leverage is when traders borrow capital to increase their trading positions, aiming for an increased return of investment. Leveraging is also a two-edged sword since it provides a greater risk of getting in debt, if the leveraged trade goes against the trader’s position.

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Hi Julie,

I have never used crypto.com so can not comment from personal experience. However, they do have some concerning reviews which are worth reading in order to give you more information.

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  1. What is a trading exchange?
    An exchange is a marketplace where securities, commodities derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public.
  2. What do brokers do?
    A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.
  3. What is margin trading?
    Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.
    Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of investment and the loan amount.
  4. What is the difference between Bid and Offer (or Bid and Ask)
    The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask. The difference between bid and ask prices, or the spread, is a key indicator of the of the asset. In general, the smaller the spread, the better the liquidity.
  5. What is the leverage?
    Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.
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Hey folks,
I was recently in a discussion where someone told me they were using Forex to invest in the “concept increase” of Bitcoin and “conceptual gains” but they couldn’t elaborate on what that means. Could you help me understand what they are talking about? @Chris_Bailey
Thanks :pray:t5:

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Hello, thanks for the question. From your message I can’t understand why this person has made those comments, it seems a highly questionable concept and I can only see two explanations at this stage.

I’m thinking either they’re misinformed and perhaps mis-used/mis-quoted the concepts of forex trading in an effort to appear more experienced, OR they’ve simply just not explained themselves in enough detail for their idea to be understood properly.

If the second explanation is the case, then it’s disappointing that they couldn’t expand on what they meant any further, so I’d be leaning towards the first explanation and would be inclined to discard their comment as useless - unless they can elaborate.

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Hi Chris,
Thank you for the insight. I was definitely confused by the conversation because I was trying to learn something. I’ll look into the investing course here on Ivan on Tech.

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  1. Trading Exchange is like the old Bazar places. Is where financial people meet to do their trade on their financial assets that could be any kind of product allowed for that exchange;
  2. Brokers are the intermediaries of financial trading systems;
  3. Is the amount of capital that you should have to could operate in a market. If you trade 100bananas at 1$ and your margin is 10%, you only need 10$ on your wallet to make the trade because the other 90$ the broker put it there. Margin trading is relational to leverage;
  4. The bid is the maximum price a buyer is willing to pay; The ask the the lower price a seller is willing to accept.
  5. Leverage is the possibility to trade for higher amounts that you do not have at that moment.
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  1. What is a trading exchange?
    A platform for speculation, buying and selling of assets, futures, margins, derivatives, etc.
  2. What do brokers do?
    Brokers act as intermediaries between buyers, sellers and the market.
  3. What is margin trading?
    Margin trading refers to the process of trading where an individual increases his/her possible returns on investment by investing more than they can afford to.
  4. What is the difference between a Bid and an Offer?
    A bid is the price a potential buyer is willing to pay - an offer is the price for which a potential seller is willing to sell.
  5. What is leverage?
    Leverage trading refers to the use of borrowed capital to get a much higher potential return on your investment.
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  1. What is a trading exchange?
    An exchange is a marketplace that provides a platform for companies, governments etc to trade securities, commodities derivatives and other financial instruments. The exchange offers orderly trading and efficient price information.
  2. What do brokers do?
    A broker is a “third party” on service offered by either an individual or firm that acts as an intermediary between an investor and an exchange. Brokers are compensated for providing this service through commissions, fees or the exchange itself.
  3. What is margin trading?
    Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset. Its not to be confused with “Trading on Margin” which basically means placing a trade order at the immediate price listed and apposed to Limit orders which are specific price offers.
  4. What is the difference between Bid and Offer (or Bid and Ask)
    The term “bid” is a buy order and the term “ask” is a sell order. From your perspective, this means that if you want to buys something at a certain price. You place a bid order. If you want to sell something at a certain price however, you place an ask/offer order
  5. What is the leverage?
    Leverage means borrowing to trade. You do require a certain amount of the item that you wish to leverage, however, you can borrow additional capital to add to this and use it as a funding source when investing to expand your asset base in order to generate exponential returns. It should be emphasised that the reverse scenario is equally p[possible. Leverage as an investment strategy is very high risk. Professional brokers and financial institutions utilise these instruments to increase the potential return of an investment. Leverage can also refer to the strategy of borrowing to finance assets.
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  1. A place where stocks, bonds, commodities, securities, and even cryptocurrencies are bought and sold.
  2. A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.
  3. Margin trading is a method of trading assets using funds provided by a third party .When compared to regular trading accounts, margin accounts allow traders to access greater sums of capital, allowing them to leverage their positions. Essentially, margin training amplifies trading results so that traders are able to realize larger profits on successful trades. This ability to expand trading results makes margin trading especially popular in low volatility markets, particularly the international forex market Still ,margin trading is also used in stock, commodity, and crypto currency markets.
    4.A bid is the price selected by the buyer to buy a stock, while the offer is the price at which the seller is offering to sell the stock.
  4. Leverage is an investment strategy of using borrowed money to increase the potential return of an investment.
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  1. What is a trading exchange?
    Trading exchange is where buyers and sellers transact with each other.
  2. What do brokers do?
    Brokers fulfill trading orders for customers.
  3. What is margin trading?
    Margin trading is when you use tools in order to trade with more money than you have.
  4. What is the difference between Bid and Offer (or Bid and Ask)
    Bid is when you buy certain stock, Ask is when you sell a stock.
  5. What is the leverage?
    Leverage is used in margin trading, it determines by how much you increase your buying power, but also by how much you will lose money if the price goes to the wrong direction.
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  1. Exchanges are marketplaces for the trade of securities, commodities, derivatives, and other financial instruments. And Crypto trading is a fully electronic exchange. Sophisticated algorithmic price matching can ensure fair trading without requiring all members to be physically present on a centralized trading floor.

  2. A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.

  3. Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.

  4. The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security. The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given security.

  5. Leverage refers to the use of debt (borrowed funds) to amplify returns from an investment or project. Investors use leverage to multiply their buying power in the market.

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What is a trading exchange?

An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public.

What do brokers do?

A broker is essentially an intermediary between you and the investing world. Brokers can be organizations (Charles Schwab, Merrill Lynch, E*TRADE, and so on) and individuals.

What is margin trading?

Margin trading uses a certain type of account that allows you to loan from your brokerage to buy securities. First you need to sign a margin agreement and set up a margin account with your brokerage. This is different from an everyday cash account that you’d use to trade other investments on the market.

Your brokerage can decide what securities can be traded on margin, and what amount you can borrow with a margin loan. Under Federal Reserve Regulation T, it’s possible to borrow up to 50 percent of a stock or exchange-traded fund’s (ETF) purchase price, although the amount can vary for individual investments.

What is the difference between Bid and Offer (or Bid and Ask)?

The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security.

What is the leverage?

Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.

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  1. A place where buyers and sellers meet to buy/sell their security, derivative, or currency of their choosing.
  2. Brokers facilitate buyers and sellers
  3. Borrowing money from the firm/exchange to use to trade for a fee.
  4. Bud are the buyers ask are sellers. Both represent what a price people are willing to buy or sell one of the aforementioned instruments at any given time.
  5. Leverage is to use borrowed capital for an investment and expects the profits made to be greater than the interest payable.
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  1. What is a trading exchange?
    An exchange is a marketplace/platform where traders/investors can make financial transactions.

  2. What do brokers do?
    Brokers are intermediaries enabling transactions among sellers of financial assets and buyers of those financial assets. The facilitate the transaction and may get a fee for doing so.

  3. What is margin trading?
    Margin is that situation in which a trader borrows money from another party and uses that money to invest in the financial markets.

  4. What is the difference between Bid and Offer (or Bid and Ask)

  • Bid is the price set by a buyer who wants to buy a given financial asset.
  • Ask/Offer is the price set by a seller who wants to sell a given financial asset.
  1. What is the leverage?
    Leveraging is the situation by which a trader is able to have a bigger portfolio (more money invested) thanks to credits or money he has borrowed (margin). Thus he can afford more investment strategies and/or invested volume to meet his goals than he would be able to do with his own money.
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  1. What is a trading exchange?

A trading exchange is the place where investments and securities are listed on an organized marketplace so that assets like cryptocurrencies, securities, commodities, foreign exchange, futures, and options contracts, etc. can be bought and sold. The core function of an exchange is to ensure fair and orderly trading (buying & selling).

  1. What do brokers do?

A broker is an individual or firm that acts as an intermediary between an investor and an exchange. Brokers charge their clients (investors/traders) fees for every trade (sell or purchase of assets) they make for the client.

  1. What is margin trading?

Margin trading is the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. Margin refers to the amount of equity an investor has in their brokerage account, so “To margin” or “to buy on margin” means to use money borrowed from a broker to purchase the assets. Margin is often explained as the difference between the total value of securities (held in an investor’s account) vs the loan amount from the broker.

  1. What is the difference between Bid and Offer (or Bid and Ask)?

The bid price refers to the highest price a buyer will pay for a security, whereas the ask price refers to the lowest price a seller will accept for a security. The difference between the two prices is known as the spread , and the smaller the spread, the greater the liquidity of the given security. Simply stated, the bid and ask refers to the best potential price that buyers and sellers are willing to transact at in the marketplace.

  1. What is the leverage?

Leverage is an investment strategy of using borrowed money (borrowed capital) to increase the potential return of an investment. Simply stated, leverage refers to the use of debt (borrowed funds) to amplify returns from an investment.

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