Basic Trading: Introduction to Buying and Selling RWAs

Now that you’ve added funds to your RWAX account, it’s time to dive into the heart of the platform: trading Real-World Assets (RWAs). Here’s how to get started with basic trading:

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Understanding RWAs on RWAX

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What are RWAs?

• RWAs on RWAX represent tokenized versions of physical or traditional financial assets like real estate, commodities, or even yield from T-Bills.
• Each tokenized asset aims to mirror the value and performance of the underlying asset.

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Asset Diversity

• RWAX offers trading in various asset classes, from precious metals like gold (XAUT) to real estate in major cities.

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Step 1: Selecting an Asset

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Browse or Search

• Navigate to the trading section of the app or website. Here, you can:
  • Browse through different categories of RWAs.
  • Use the search function to find specific assets.

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Asset Information

• Click on an asset to view detailed information, including:
  • Current price, historical performance, and market cap.
  • Asset specifics like location (for real estate) or purity (for metals).

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Step 2: Placing an Order

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Market Orders

• Definition: A market order is executed at the current market price, ensuring a quick trade.
• To Buy: Set the amount of the asset you wish to purchase.
• To Sell: Specify how much of the asset you want to sell.
• Execution: The trade happens immediately at the best available price.

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Limit Orders

• Definition: A limit order allows you to specify the price at which you’re willing to buy or sell.
• Buy Limit: Buy only if the price drops to or below your set limit.
• Sell Limit: Sell only if the price rises to or above your set limit.
• Execution: The order will only execute if the market price meets your limit. If not, your order remains in the order book until it does or until you cancel it.

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Step 3: Understanding Transaction Details

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Order Confirmation

After placing your order, you’ll receive a confirmation with details such as:

• Order ID
• Asset name
• Quantity
• Price (for limit orders)
• Transaction fee

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Transaction Fees

• Be aware of the fees for each trade, which might be a flat rate or a percentage of the trade amount.

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Slippage

• For market orders, understand that there might be slight price differences between when you place the order and when it’s executed due to market volatility.

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Step 4: Monitoring Your Trades

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Trade History

• Check your transaction history to see completed trades, pending orders, and any fees incurred.

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Price Alerts

• Many platforms allow setting alerts for price movements, helping you stay on top of when to act on your limit orders.

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Portfolio

• Regularly review your portfolio to assess how your RWAs are performing against market trends.

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Additional Considerations

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Liquidity

• Some RWAs might have less liquidity than others, impacting how quickly you can trade at your desired price.

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Market Hours

• While crypto markets run 24/7, specific RWAs might have trading hours or be influenced by traditional market hours.

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Risk Management

• Start with smaller trades to get a feel for the market.
• Understand that all trading involves risk; only trade what you can afford to lose.

By mastering these basics, you’ll be well on your way to trading RWAs on RWAX. Remember, trading is not just about buying low and selling high but also about understanding market dynamics, asset specifics, and your own risk tolerance.

Disclaimer: Nothing in this document constitutes investment advice and is not meant as such. RWAX is just a frontend to access products already available on-chain, provided by other platforms and companies. We are not a licensed broker and do not operate as a brokerage.