What is Binance Spot? How to trade Spot on Binance exchange
Binance Spot, also known as Binance Spot Trading, is a traditional trading method on the Binance exchange where buyers place orders to buy, sellers place orders to sell. When the bid and ask prices match, the trade is executed. For example, the seller wants to sell 100 XRP for $ 1.2, the buyer also places an order to buy 100 XRP for $ 1.2, immediately the transaction is matched with the amount of 100XRP for $ 1.2.
On the Binance exchange, users who want to trade in the Spot market should visit:
Learn about the Binance Spot Markets and Trading Pairs
In the spot market section (spot) is a place to list thousands of trading pairs that combine hundreds of coins with BTC, ETH, BNB, USDT… For example, XRP has the following trading pairs: XRP/USDT , XRP/BUSD, XRP/BTC, XRP/ETH, XRP/BNB, XRP/USDC, XRP/EUR, XRP/TUSD, XRP/RUB, XRP/TRY, XRP/AUD, XRP/BRL, XRP/GBP…If If you want to trade XRP exchange you will have a lot of options for you.
Spot Transaction Fee
The average spot market transaction fee is ~0.1% . However, if you use BNB to pay fees, you will receive a -25% reduction in transaction fees. Exactly what the specific transaction fee is for each transaction depends on whether you are a Taker or a Maker, find out Binance Taker, Maker Fees
Types of Place Orders on the spot market (spot)
There are 4 types of Orders in the spot market: Limit Orders, Market Orders, Stop Limits and OCO orders.
What is a Limit order?
Limit order is an order used to buy or sell at a specific price desired by the user. For example: XRP is trading at the market price of $ 1.1024 , You want to sell 100 XRP for $ 1.15 (the price is higher than the current trading price) or you want to buy 100 XRP at $ 1.05 then these are Limit Orders. . If the market goes up and XRP price reaches $1.15 then a sell order is filled, otherwise if the market falls to $1.05 a buy order is filled. If the market does not reach these 2 prices, the order will continue to be in the Pending Order section when it is eligible to be matched.
What is a Market Order?
Market order (market order) is an order that is executed immediately at the best available market price. For example, if you want to buy or sell 100 XRP but you don't want to wait long, use the Market order to execute, then the order will be executed immediately.
What is a Stop Limit order?
When to execute a Stop Limit Order?
The Stop Limit order is used when the judgment of the market goes up and down beyond your control and you want to minimize the risk of preserving your capital when the market drops to a certain price level that you feel is acceptable. Or when the market is bullish and you don't want to miss your chance to ride the market.
Stop Limit sell order : is an activated sell order placed in the system when the market price reaches a certain price threshold. For example XRP price is $ 1.2 and the market is going down and your risk threshold only accepts XRP price down to $ 1.1 and you want to sell at $ 1.05 to preserve capital, then you place a Stop Limit sell order. Then you place the order as follows:
When the market falls to the threshold of $ 1.1, immediately a sell order is activated with a selling price of $ 1.05, if the price continues to drop to $ 1.05, this sell order will be filled.
Same with Buy Stop Limit Order . For example, the market price of XRP is $ 1.2, if you are considering the price of XRP can go up to $ 1.5, and you don't want to lose your chance and accept to buy when the price reaches $ 1.3. Please place a Buy Stop Limit order as follows:
When the market price rises to $ 1.3, immediately a buy order is activated and placed in the system with a buy price of $ 1.31, when the price continues to increase to $ 1.31, this buy order is filled.
How to Make Spot Trades on Binance
After learning about transaction fees and order types, we begin to trade on the spot market.
For example, choose the XRP/USDT trading pair and execute a sell order Limit 20 XRP for $1,113. In the Price box enter 1,113, in the Quantity box enter 20, The amount collected when selling at this price is 22.26 USDT. Check the information and click the Sell XRP button to place an order. After placing an order, the order will not be executed immediately and the order is in the Pending Order section
After the order is matched, go to the History section to check the Order History, Transaction History
Similarly if you want to buy XRP with USDT do the same. For example, if you want to buy 20 XRP with USDT for $ 1,116, the amount to pay is 22.32 USDT. After checking, click Buy XRP to place an order
In short, when participating in trading - trading a market on the Binance exchange, you need to understand basic knowledge such as what products are traded in the market (spot, futures, margin ...). How much is the transaction fee? How to place buy and sell orders? Once understood, it will be very easy to execute your trades competently.
