What is Spot Trading?
Spot trading is a type of trading which allows you to buy or sell assets instantly at the market price. Unlike futures trading, where you agree to trade later, spot trading happens immediately. This makes it popular for traders who want quick deals and instant ownership.
Check out What is Spot Trading for details!
How to Use Spot PnL Calculator?
- Type in the amount or the number of units you're trading
- Enter your entry price and exit price
- Add any fees, if applicable
- The estimated profit or loss will be shown in realtime
Note: You can add investment amount in terms of units of a token/asset or total amount. If you add the total amount, the calculator will automatically calculate the number of units based on the buy price.
Net Profit Calcualtor
In addition to the Spot PnL Calculator, that allows your to calculate the profit and loss of a single trade, we also have a Net Profit. This allows you to add multiple trades and calculate the total profit or loss of all your trades.
Why Use This Calculator?
This tool can be useful for Crypto, Forex, Stock market or Commodity traders who want to calculate the profit or loss of their spot trades. It can help you determine the profitability of your trades and make informed decisions about your trading strategy.
What are the Advantages of Spot Trading?
- Immediate Delivery: Spot trading allows for immediate delivery of the asset, which can be advantageous for traders who want to take possession of the asset quickly.
- Price Transparency: Spot trading offers price transparency, as the price of the asset is determined by the market at the time of the trade.
- Low Counterparty Risk: Spot trading involves trading directly with the counterparty, which can reduce counterparty risk compared to trading on exchanges.
What are the Disadvantages of Spot Trading?
- Market Risk: Spot trading exposes traders to market risk, as the price of the asset can fluctuate between the time of purchase and sale.
- Lack of Leverage: Spot trading does not offer leverage, which can limit the potential returns for traders.
- High Fees: Spot trading can involve high fees, such as transaction fees and exchange fees, which can eat into profits.
What are the Alternatives to Spot Trading?
- Futures Trading: Futures trading involves trading contracts that obligate the buyer to purchase an asset at a future date and price.
- Options Trading: Options trading involves trading contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a specified price.
- Margin Trading: Margin trading involves borrowing funds to trade assets, which can amplify gains and losses.