#AirdropStepByStep

Key differences between margin trading and futures

1. Operational mechanics

Futures: Standardized contracts to buy/sell an asset at predetermined future price and date, with margin as collateral.

Margin: Borrowing funds from the broker to trade real assets, using margin as collateral.

2. Leverage

Futures: Significantly higher leverage (up to 125x in cryptocurrencies).

Margin: Moderate leverage (generally 3x-10x).

3. Assets

Futures: Mainly commodities, currencies, indices, and cryptocurrencies.

Margin: Wide range (stocks, cryptocurrencies, currencies).

4. Ownership of the asset

Futures: Does not imply ownership of the underlying asset.

Margin: You maintain ownership of the purchased asset.

5. Risks

Futures: Losses can exceed the initial margin due to high volatility and extreme leverage.

Margin: Risk of liquidation if the value falls, but lower exposure to excessive leverage.

6. Strategic use

Futures: Ideal for short-term speculation and risk hedging.

Margin: Suitable for leveraged investments in the medium/long term.

Choice according to profile

Risk tolerance: Futures for high tolerance, margin for moderate.

Objectives: Futures for quick gains, margin for gradual growth.

Experience: Futures require greater technical knowledge.