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Independent educational resource

Spot trading: price, liquidity and execution

Why trading without leverage still involves substantial financial and technical risks.

Published: · Lincare

What spot exposure means

Spot trading generally involves exchanging one asset for another rather than maintaining a perpetual derivative position. An asset can lose a large part of its value even when no leverage is used. Token-specific rights, restrictions and technical characteristics also matter.

Market and limit orders

A market-style instruction prioritises execution, not a guaranteed price. A limit order specifies a price boundary but may not fill. The spread is the difference between available buying and selling prices; slippage is the difference between an expected and actual execution price.

Check the whole transaction

Review the market pair, amount, minimums, fees and destination of any subsequent transfer. Small displayed spreads do not guarantee that a larger order can execute at the same price.