Skip to main content
Spot trading means buying or selling the actual asset at the current market price. If you buy BTC, ETH, SOL, or another token on the spot market, you now own that asset. It sits in your balance, and its value changes with the market. This is the simplest type of trading because there is no borrowed money, no leverage, and no liquidation price. You buy an asset because you think it will be worth more later, or you sell an asset because you want to exit your position now.

​
Why it matters

Spot trading is usually the best place for beginners to start. It helps you learn the basics:
  • how markets move
  • how prices change over time
  • how orders are placed
  • how profit and loss work
It is also easier to understand than leveraged trading because your risk is more straightforward. If the asset price drops, your position loses value, but you do not get liquidated just because the market moves against you.

​
Simple example

Imagine you buy 1 SOL at 120 USDC on the spot market.
  • If SOL goes to 140 USDC, your unrealized profit is 20 USDC
  • If SOL falls to 100 USDC, your unrealized loss is 20 USDC
You still own the 1 SOL the whole time unless you decide to sell it.

​
When people use spot trading

People usually use spot trading when they want to:
  • buy and hold an asset
  • swap one token for another
  • build a position slowly over time
  • avoid the extra risk of leverage
That is the main difference from Perpetual trading, where you trade price exposure instead of the asset.