How to spread trading

[XUNing]

Spread is a common trading indicator that refers to the price difference between different types of positions. Spread trading is a trading strategy that opens two positions at the same time. Traders are trading the relationship between two assets, not the assets themselves.
Cross-currency exchange rate transactions
In most exchanges, cryptocurrency products are traded with BTC, ETH or USDT as the underlying assets. For example, LTC/BTC is the price difference between LTC and BTC. Cross-currency exchange rate transactions can be simplified to buy and hold stronger cryptocurrencies, while selling weaker cryptocurrencies, so as to profit from the spread between them.
Futures spread

• It is possible to trade futures with the same asset but with different maturities.If the price gap narrows, you will make a profit.
• Spreads can be established on different types of cryptocurrencies or their futures, so that cross-currency spread transactions can be realized in the encrypted spot market.

By trading spreads, traders can reduce trading risks and greatly benefit from a more turbulent market. So if I want to start trading cryptocurrency futures spreads, how should I trade?

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[1714721236]

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[GreatArkansas]

This is the first time that you still can make profits in doing futures trading by just using the spreads. What I know is this is major happening on spot tradings only.
And there are some exchanges that are using this as an advantage, especially those easy-to-use centralized exchanges, like swap from another currency to another cryptocurrency. When the spread of buying and selling price is extremely huge.

[Liamttw]

The cryptocurrency market is unstable and correct risk management is very important. Spread trading in the cryptocurrency market can also diversify your trading strategy, reduce risk losses and create more profit possibilities.
To start trading the spread of cryptocurrency futures, you need a trading account and market software for trading cryptocurrency futures to view the spread. After setting the stop-profit and stop-loss prices by analyzing the chart that displays the price of the spread, you can start trading.

[Karish2return]

Spreading of trading can be possible through exchanges and we can say through different exchanges. As I can say that there will be more exchanges and can be easily converting coins to other currency then it should increase trading.

[michellee]

It is better to learn more details about trading before going with futures trading as that can confuse you to determine the time to enter the market.

But I wonder where do you get that idea? Did you get it from this:

https://insights.deribit.com/industry/spread-trading-on-crypto/

If yes, it is something that I do not use for trade as I prefer to trade in the regular exchanges because I am not sure about the risk. If you do not understand how it works, you can get more risk from that.

But it looks like playing with Long and Short in the futures trading because I see similarities between them.

[XUNing]

I'm into trading just recently I heard a lot about different strategies but this is the first time I heard about this spreading I'll try to learn more about it by reading online or by watching youtube, do you think it could be profitable in long term?

Spread trading is a very popular trading method. It generally occurs in spot trading, and we also call it arbitrage in many cases. There are many kinds of spread transactions, and arbitrage is only a part of them. Some spread transactions change the transaction target through combination, such as the exchange rate of different currencies.
The low-risk nature of this type of transaction is chosen by many investors. You can try the portfolio position yourself, and try to construct a spread transaction yourself.

[checkmatesir]

The procedure of spread trading is to surrender the financial specialist a net position with a value (or spread) that's dependent upon the distinction in cost between the securities being sold. In most cases, the legs are not exchanged freely but instep, are exchanged as a unit on prospects trades.

[palle11]

I see spread to be the difference in pricing between sell and buy except maybe I'm lost in your own angle. Example here is every coin has different price kept to buy or sell, the prices are not the same for both transactions. If you are buying a coin, you are expected to pay more than when you want to sell and that difference in between is known as the spread if I'm right. Take selling of a coin may be at 0.003 and selling same coin may be at 0.0025 , the difference is the spread and most traders like to get the best spread which is the lower and best rate spread.