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Spot trading forms the foundation of cryptocurrency trading, where transactions involve the direct exchange of digital assets at current market prices. When you engage in Spot trading, you purchase or sell actual cryptocurrencies using your available wallet balance, gaining immediate ownership of the assets without leverage.
Spot Margin Trading builds upon this foundation by introducing the ability to trade larger positions through borrowed funds. This advanced trading method allows you to use assets in your Unified Trading Account (UTA) as collateral to borrow additional capital from Bybit EU, effectively amplifying your trading capacity beyond your immediate wallet balance.
Key Takeaways:
Spot Margin Trading amplifies positions with up to 10x leverage by using Unified Trading Account collateral and allowing trades that exceed your wallet balance.
Positions face liquidation when the maintenance margin rate (MMR) reaches 100%, potentially resulting in total collateral loss.
Bybit EU requires traders to have mandatory knowledge assessments before accessing leverage features, ensuring MiCA compliance and risk awareness.