There is a difference between futures and spot trading.

Opening a spot wallet position can either be with a limit order or a market order. These types of orders are the most common positions when opening a trade. 

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Trading in a spot wallet includes that you own an x amount of coins. With futures trading people enter into a contract to buy or sell an asset at a specified price on a future date. This allows traders to speculate on the future price movements of an asset whiteout owning it.

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The downside of trading in spot wallet

The downside of trading in derivatives (futures) is that if you open a position and you lose your money, you lose it for good. If you haven’t placed a stop loss in your position and you let the trade play out and it goes against you there might be a chance that the whole account will be liquidated. If you have a small account and you use a lot of leverage it means you can be stopped out of the position quicker.

If you trade forex your broker usually will warn you with an e-mail that your position can possibly be closed soon.

Your whole account can be liquidated if you have opened a position and used cross margin instead of isolated. Having your trade isolated means that you can only lose the amount you have set as your stop-loss.

When you trade cryptocurrency spot price you are trading its current market price and when you trade a futures contract you trade the futures price of a crypto.

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