Crypto Academy / S4W6- Homework Post for @reminiscence01 by @g0h4mroot.

• Spot Trading
  
  
  
  

Spot trading is one of the most used by beginner traders, through the use of these orders you can gain experience, day by day with each operation performed.

In the cash orders the same technical analysis is used and the market is studied in the same way, the only difference of these orders is that we buy the currency and we can do what we want with them.
In these types of orders, we make a profit if we hold them and then we sell them when we have already decided that we made a profit.

• Futures trading

Futures trading is handled differently, in futures trading we never buy the asset, we only get a contract on its price, this contract indicates a power to receive a relative amount of money if our operation wins in favor, in trading futures we have 2 types: buy (long) and sell (short) orders.

It could be explained as a bet that is made on the asset, that is, if we bet that the asset will rise and the asset increases in value we obtain benefits, but if we bet that the asset will rise in price and does the opposite by lowering its price, we will lose.

• Margin trading
  
  
  
  

In margin trading, you use leverage as a means of capital to make a profit.

In margin trading, the broker makes us a loan equivalent to our capital to be used and multiplied by a percentage, this percentage is shown in "X" and depending on the broker this can be 10x, 20x, 50x 100x.

If our capital available for a trade is $ 10 and we borrow 50x, our trade would open for $ 500 instead of $ 10.

• Order limit

In the limit order we can choose the desired amount to buy or sell and thus decide when we want to exit or enter the Market, stipulating an exact desired value.

As an example, if I want to buy 10 bnb at $ 450, I configure my order to be bought when the price of the bnb reaches that value and my order will automatically buy.

• Order stop limit

the stop limit order is used when we want to place an order and we do not want to be pending.

If we have already studied the market and we have done a good technical analysis and we stipulate that an asset may cost a specific value to enter, then that is when the stop limit order intervenes.

To understand it better, we can think of it as follows:

Imagine that we set an alarm and this alarm will automatically activate a button to open a door at 12:00 for our dog to go out to the garage.

In the same way as the previous example the stop limit order works, this type of order what it does is activate an order when our asset reaches a stipulated price, and then automatically activate a new order that has been previously configured.

• Order OCO

OCO orders are an order that cancels an order as indicated by its name.

These orders are configured for when we want to make 2 orders and we cannot, then we decide to do what happens first.
This is what an oco command does.
What happens first is what triggers the order.
that is to say:
If I have a configured buy order for the AXS / USDT pair and I have stipulated that 100axs be bought at $ 80, but I have also configured a sell order when the AXS reaches $ 125 for 300axs.

the instruction that I have given to my order is to do what happens first, that is:

If the AXS reaches $ 80 my order will be activated and I will buy 100axs at $ 80 per unit and my other order will be canceled.

if the opposite happens my order will do the same but to the invera, that is to say:
If the price of the axs goes up and the price touches $ 125, my 300axs will automatically be sold and my other order will be canceled.

• Order Stoploss

The stop loss order is used to stipulate how much money we are willing to lose in order to win, this order is known as a risk setting and is used to stipulate a percentage amount in loss.

as an example:

if we want to invest $ 1000 in a trade to win $ 10,000
and we are willing to lose 10% of our capital, what we do is configure our stoploss for when our order is activated and the price returns against us, falling below $ 100, the order is closed automatically when the price touches $ 90.

• Take Profit Order

This order is similar to the stop loss only in reverse, that is:
If we want to obtain profits when our operation exceeds 40% of profits, what we must do is configure our take profit for when the value of the asset reaches the stipulated price, the order closes automatically.

Risk can be managed with an order or otherwise as follows:


If we want to make a purchase of 15matic at a price of 1.9 $ per unit, but the current price is at 1.5 $ and according to our technical analysis it can go down to 1.3 $, we can configure an oco order to minimize our losses.

How do we do it?


We open an oco order that triggers a buy when the price is $ 1.2 per 15matic and then we create another order in case the price continues to rise and approaches the value of $ 1.9 per matic.


when the price reaches 1.2 $ the order will buy my 15 matic at the price of 1.2 $ per matic and the order of 1.9 will be canceled.

• Next it will be shown how to configure an OCO order.
  
  
  in the boxes indicated with numbers we will fill them in the following way:

in the drop-down box we click on OCO

1-here the price we want to buy is placed, it must be the lowest.


2- this is the amount we want to activate our orders.


3- the current market price.

Next, we will point out and list the steps to follow to buy the ICP coin in 7 easy steps.

• I will use the ICP / USDT pair for this evaluation.
  
  
  
  

1- We verify that we have the money in our account.


2- we go to the section TRADES where indicated.


3- In the search box we choose the desired currency in this case I chose ICP.

4- in the box where it says Total (USDT) we can add the desired amount, in my case I chose 100% of my funds.


5- we click buy.


6- We verify that the purchase order has been made as shown in the box.


7- Ready, we go to our spot wallet and verify that the ICPs have been purchased.

• Why did you choose the crypto asset

I chose ICP because it is a project that aims to decentralize the internet and carry it out to the whole world, where all users can have the power to vote and decide on the project

• Why you chose the indicator and how it suits your trading style.

The macd is an oscillator type indicator that has 3 lines, a slow line of 200 periods, a fast line of 10 and 20 periods.

It is simple and easy to understand, through the crosses of means it is possible to identify a possible trend and know where the market will go

• Indicate the exit orders. (Screenshots required).