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TRADING

What is the difference between spot exchange and margin trading?

The bigX exchange currently offers only spot exchange or deliverable trading for exchanging crypto or fiat currencies.

While utilizing bigX as a spot exchange, you must have adequate balances in one currency to exchange for another, for example, depositing EUR in order to exchange for BTC on the BTC/EUR pair. After executing a spot exchange between currencies the balances are available to be exchanged again or withdrawn. 

Margin trading is speculative leveraged trading without actual delivery of an asset. It is used in order to get profit from price movements. Margin trading involves using borrowed funds to leverage up a trade, opening a larger position with a smaller amount of the trader’s funds.

A trade can be initiated by using the margin trading function, where the user will be offered a certain leverage size,

applicable to the trade. The primary investment amount will then be multiplied by the offered multiplier.

Margin trades are subject to maker and taker fees and will also be subject to additional interest charges when left

open for an extended period of time.

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