welcome to the Wonder trading Channel if you are involved in trading financial instruments you have probably heard of spread Trading this is a trading strategy that involves simultaneously buying one asset and selling another asset in a pair to profit from changes in their relative price in this video we will focus on the two-leg entry technique which is used to create profitable spreads and Arbitrage Trading if you want to improve your knowledge of trading financial instruments this video is for you first of all it is important to understand what a spread is and how to work with it spread trading is a strategy where a Trader tries to profit from the difference between the prices of two assets in the context of cryptocurrencies this could be for example the difference between the price of Bitcoin and ethereum interestingly the spread can be both positive and negative a positive spread arises when the price of one asset exceeds the price of another and a negative spread when the price of the first asset is lower than the price of the second trading spreads on a cryptocurrency exchange has many advantages firstly it allows traders to make profits in any market conditions including during a crisis secondly spread trading is more predictable than traditional cryptocurrency market trading because it does not depend on the overall direction of the market to see the spread chart you need to divide the price of one asset by the price of the second asset for example here is what the Bitcoin and ethereum spread chart would look like when trading on the spread chart we will make four trades we will always buy one asset and sell the other for example to enter a long position on this spread chart we will buy Bitcoin and sell ethereum to enter a short position we will sell Bitcoin and buy ethereum in total we will have four trades two for opening and two for closing opening and closing these trades at the market price will always reduce the profit because the commissions for four trades will often exceed the profit from the spread trade in order to reduce the commission from trades and increase profit we have added the two-leg entry feature for pair trading spreads go to the Wonder trading platform and open the terminal switch to the spreads and Arbitrage mode and select two leg entry let's consider an example to understand how two-leg entry works if we are trading in Long spread Ada and ethereum the first limit order will be placed at the nearest bid offer in the Ada order book which we have highlighted in purple and the second limit order will be placed at the nearest ask offer in the ethereum order book which we have highlighted in blue then the system will wait until at least one limit order is executed once one limit order is executed the other limit order on the other leg will be canceled and a market order on this leg will be executed to fix the spread price exiting the position will be similar but unlike entry a take profit or stop loss will be used as a stop price for exit in order to open a trade on the platform let's go to the spreads and Arbitrage mode on the terminal and select two leg entry choose the trading pairs set the necessary settings and execute the trade for buying the stop order price should be below the current price and for selling it should be above the price when opening a trade on the platform you can see that one trade is in a buying position while the other is waiting for selling in the order books of the selected coins it will look like this one limit order will be placed below the set stop price for buying and the second order will be above the stop price for selling when one of the limit orders is triggered the second order will be executed at market price thereby forming the spread when trading spreads using the two-leg entry feature we can achieve maximum accuracy in order execution and reduce fees by using limit orders all right that's it you can learn more about the two-leg entry feature by following the link in the description thank you very much for watching this video subscribe to the channel and we wish you good luck with your Trading