Recently, the launch of NGKEX has brought a wave of enthusiasm to the crypto industry. Many ecological builders are excited to inject funds, aiming to obtain a wave of benefits through NGKEX.
As we all know, the NGKEX currently supports currency trading, contract trading, leveraged trading and OTC trading. If ecological builders clearly understand about spread trading and how to conduct spread trading in the NGKEX, then they are believed to have higher chance in obtaining profits. Therefore, this article is very important for ecological builders. Read through this article to find out the information needed by ecological builders.
What is spread trading
Spread trading is a trading strategy by opening two positions at the same time: a “long” position and a “short” position. In fact, ecological builders are trading the relationship between two assets, not the assets themselves.
In the NGKEX, currency trading products include BTC, ETH or USDT as the basic assets. This is mainly due to the development of the cryptocurrency world because the use of fiat currencies (e.g. US dollar and euro) requires stricter regulations, which will also restrict the common application of many users. Therefore, the NGKEX decided to use cryptocurrency as the basic asset after repeated consideration.
Therefore, ecological builders can see LTC/BTC, XRP/BTC, ETC/ETH, NEO/BTC and other currency pairs in the currency trading of NGKEX. Trading cross currency pairs is also an example of spread trading. In essence, this is a very avant-garde trading technique that will make most new ecological builders confuse.
For example, LTC / BTC the trading of price difference between LTC and BTC, which is often referred to as cross-currency exchange rate.
It is no exaggeration to say that if there is no cross-currency trading, cryptocurrency could not achieve such a huge market, and it will not be as popular as it is now.
How to trade spreads in NGKEX
What should ecological builders do if they want to perform spread trading in NGKEX? Here is an example of currency trading.
Ecological builders can find the currency pair they want to trade in the currency trading. For example, if the trend of the XPR/BTC currency pair is relatively weak, while the trend of LTC/BTC is relatively strong, then ecological builders can buy LTC while selling XPR. With that, it is equivalent to holding a short position in XPR and a long position in LTC at the same time. When the market changes, if the upward fluctuation of the long position of LTC held is significantly greater than the downward fluctuation of the short position of XTR, then, they can close two positions at the same time to obtain benefits.
In fact, the ecological builders can use NGKEX to perform spread trading in the OTC trading and contract trading. However, please be reminded that when trading spreads, you must carefully analyze the market trend between the two trading pairs to avoid losses.