What is Spread Trading?

Aakarshan590

Spread trading is a trading strategy that involves opening two positions simultaneously: a ""long"" position and a ""short"" position. In reality, traders are trading the relationship between two assets rather than the assets themselves.

In most exchanges, cryptocurrency products are traded with BTC, ETH, or USDT as the underlying assets. This is primarily due to the development history of the cryptocurrency world, as using fiat currencies like the US dollar or euro would require exchanges to adhere to stricter regulations, limiting the use for many users. Therefore, most exchanges use cryptocurrencies as the underlying assets.

As a result, currency pairs like LTC/BTC, XRP/BTC, ETC/ETH, etc., have become very popular in this field. Trading cross-currency pairs is also an example of spread trading. Essentially, this is a very advanced trading technique that can be confusing for most newcomers.

For example, LTC/BTC involves trading the price difference between LTC and BTC, often referred to as cross-currency exchange rates. It's not an exaggeration to say that without cross-currency pair trading, cryptocurrencies would not have as broad a market presence and might not be as popular as they are today.

Kahn332

USDT is quite useful; it works well for me.

Jatin255

Almost every company now has USDT.

Jiger955

Many people are using USDT now, and it's very convenient.