When you trade on Binance, you will see two prices for each cryptocurrency – the first price is known as the “bid” price, and the second price is known as the “ask” price. The bid price is the highest price that someone is willing to pay for a cryptocurrency, and the ask price is the Lowest price that someone is willing to sell a cryptocurrency.
The difference between these two prices is known as the “spread.”.
The spread is important because it represents how much liquidity there is in the market for a particular cryptocurrency. If the bid and ask prices are very close together, then there is a lot of liquidity in the market and it is easy to buy or sell a cryptocurrency.
If the bid and ask prices are far apart, then there is less liquidity in the market and it may be more difficult to buy or sell a cryptocurrency.
When you place an order on Binance, you will see two prices – the “limit” price and the “market” price. The limit price is the price that you are willing to pay (or sell) a cryptocurrency.
The market price is the current price of a cryptocurrency.
If you place an order at the limit price, your order will only be executed if someone else is willing to trade with you at that price. If there is no one else willing to trade with you at that price, your order will not be executed.
If you place an order at the market price, your order will be executed immediately at the best available price.
The “margin” on Binance refers to the amount of money that you are borrowing from Binance to trade with. When you trade with margin, you are essentially using leverage to increase your buying power.
For example, let’s say that you have 1 BTC and you want to buy 10 ETH with it. With a 1:1 leverage, you would need to borrow 9 ETH from Binance in order to complete this trade.
This would give you a total of 10 ETH (1 BTC + 9 ETH) to trade with.
If ETH goes up in value by 10%, then your 1 BTC investment would increase in value by 10%, but your 9 ETH loan would increase in value by 100% (because of the leverage). This would give you a profit of 1 BTC + 0.
9 ETH = 1.9 BTC.
However, if ETH goes down in value by 10%, then your 1 BTC investment would decrease in value by 10%, but your 9 ETH loan would decrease in value by 100% (because of the leverage). This would give you a loss of 1 BTC + 0.
9 ETH = 0.1 BTC.