Spot Trading Guide – ABIT

What is Spot Trading？

Spot Trading is currency to currency trading, also known as exchange. In reality, the traditional transaction is to price the goods (such as commodities) with money. The trader pays the money to exchange the goods directly. This transaction can be abbreviated to "money/currency", which means how much currency a transaction equals.

U can use one currency to pricing another one and exchange two currencies to complete the transaction, such as BTC, ETH, USDT, etc. If you want to use USDT to price BTC, you will generate a BTC / USDT pair whose price represents how many usdts a BTC equals.

Two ways of spot trading

Centralization (Deposit and withdrawal are on the chain, trading is not on the chain).

The exchange is generally centralized exchanges, traders need to deposit the currency into accounts on the platform, which stores and manages the digital currency. After the trading, withdraw the currency into wallet.

Decentralization (No need to deposit and withdraw , trading on the chain).

Traders use their wallets to complete matching . When trading, transfer the currency from the wallets to the other party's wallets , assets are kept by the traders.

ABIT is currently centralized.

Market price

The market price is set by the buyer and the seller. ABIT adopts the matching system, and the price is determined by the market. When a buyer's market is larger than a seller's , prices will rise,when a seller's market is larger than a buyer's , prices will fall.

Type

Limit Order

Traders need to specify the buy and sell prices, and complete the transaction through price matching.