I will explain the difference between spot trading and margin trading.
It’s obvious, but…
In margin trading, since there is no spot trading, the trader’s “profit” becomes the securities company’s “loss.”
In spot trading, the securities company only receives commission, so the trader’s “profit” becomes the securities company’s “profit.”
To put it in perspective…
Margin trading is the same as casino roulette or pachinko parlors, where you compete against the bookmaker (the securities company).
Spot trading is the same as casino poker or mahjong, where the bookmaker receives a commission for the games played between players.
Margin trading is the same as FX margin trading, so you may be able to win a little, but there is a backlash from the leverage, so even with a 3x leverage, it will be tough.
In the first place, in the case of margin trading, the bookmaker’s profit is the difference between the ask price and the bid price, which becomes the securities company’s profit, and this difference is the so-called deduction rate (temple money).
In the case of spot trading, there is no difference due to the order book, so the broker has no room to absorb the profits, and the commission becomes the source of income.
I think there are few traders who understand the structure and calculate the deduction rate, so let them be our “nutrient”! lol
I think you can win with credit up to about 100 million, but after that, I think it will be spot trading.
I think the final form will be spot trading with system trading, right?
I will write about the backlash of leverage in a separate article.
