Here is a clear and simple explanation of the differences between SPOT, FUTURES, and MARGIN on Binance:
---
1. SPOT
Real purchase of cryptocurrencies.
You only use the balance you already have (for example: USDT, BTC, BNB...).
There is no liquidation risk.
Ideal for beginners or long-term investors.
Example: You buy 100 USDT in BTC and that BTC is yours immediately.
---
2. FUTURES
You do not buy the actual asset, but rather make a contract to speculate on whether the price will rise or fall.
You can use leverage (e.g., 10x, 20x...), meaning you trade with more money than you have.
There is a risk of liquidation if the market goes against your position.
Ideal for experienced traders looking for quick profits (and accepting more risk).
Example: You bet 50 USDT that BTC will rise, using 10x leverage. You are controlling as if it were 500 USDT, but if it drops significantly, you can lose everything.
---
3. MARGIN
Similar to SPOT, but you can borrow money to buy more.
It has interest (you pay for the loan).
There is also a risk of liquidation if your collateral drops significantly.
It is like a midpoint between SPOT and FUTURES.
Example: You have 100 USDT, borrow 100 more, and buy 200 USDT in ETH. If ETH drops, you might lose everything or have to top up funds.
---
Which one to choose?
SPOT: Safe, straightforward, ideal for beginners.
FUTURES: High potential profit, but also high risk.
MARGIN: More buying power, but with debt and liquidation risk.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.