Spot vs Contract Trading:
What Is the Difference?
MERCADE presents Spot and Contract as separate products. The main distinction is what you trade: a spot transaction exchanges cryptocurrencies, while a contract position follows rules tied to an underlying asset's price.
Spot
Contract
| AT A GLANCE | Spot trading | Contract trading |
|---|---|---|
| What you trade | The cryptocurrency itself | A contract linked to an asset or market |
| Main result | An exchange of assets when the order is filled | An open position governed by contract terms |
| Margin or leverage | Not part of a standard unleveraged spot trade | May apply, depending on the contract |
| Terms to examine | Trading pair, price, amount and fees | Contract size, margin, costs and closeout rules |
When Does Spot Trading Make Sense?
Spot trading is the relevant product when your aim is to buy or sell the underlying cryptocurrency. Start by finding the asset and trading pair you want. The pair determines what you give up and what you receive when the order is filled.
Read more on our Spot Crypto Trading on MERCADE page.
When Is a Contract a Different Choice?
A contract creates a position linked to price movement rather than a direct spot purchase. Its terms determine the size of the position, how costs are charged and what happens when the position is closed.
Contracts can differ substantially from one market to another. Do not assume that the rules for one contract apply to another. Our Crypto Contract Trading on MERCADE page explains the terms worth comparing.
Three Questions That Clarify the Choice
- Do you want to acquire or sell the cryptocurrency itself, or open a position linked to its price?
- Which assets and markets are currently available in each product?
- What costs and position rules apply to the specific market you choose?
The answers identify the product you are actually using. They matter more than choosing a market based only on a coin's name.
Frequently Asked Questions
Is a crypto contract the same as owning the coin?
No. A contract is a separate instrument. A spot purchase concerns the underlying cryptocurrency.
Does spot trading always involve leverage?
A standard spot trade does not. Margin trading, where offered, is a separate arrangement with different rules.
Does MERCADE offer both products?
MERCADE's current website lists both Spot and Contract among its core products. Available markets and product terms should be checked on the trading platform.
Explore your trading options
Understand the product before choosing a market.