trading types
1. **Spot Trading:** Buying/selling assets (crypto, stocks, forex) for immediate delivery and settlement at the current market price. You own the asset.
2. **Futures Trading:** Agreeing to buy/sell an asset at a predetermined price on a specific future date. Used for hedging or speculation without owning the underlying asset.
3. **Margin Trading:** Borrowing funds from a broker to trade larger positions than your capital allows, amplifying both gains and losses. Involves interest and liquidation risk.
4. **Options Trading:** Buying/selling contracts giving the *right* (but not obligation) to buy/sell an asset at a set price before a certain date. Offers defined risk (for buyers).
5. **OTC Trading:** Direct, private deals between two parties, bypassing exchanges. Common for large block trades to avoid market impact.
*(Perpetual Futures and CFDs are also significant derivatives.)*