Introduction to Spot Trading Mechanics
Spot trading represents the foundational pillar of digital asset markets. Unlike derivatives, spot trading involves immediate settlement and direct asset transfer between wallets.
1. Order Book Depth and Slippage
Order book dynamics determine execution quality. Large market orders can experience slippage if liquidity layers are insufficient.
2. Statistical Arbitrage
Quantitative bots capitalize on minute cross-exchange price discrepancies, executing synchronous buy and sell legs while optimizing fee structures.
