Spot vs Margin vs Futures: Whatโs the Difference?
๐ Know your tools. Pick the right strategy.
๐ Spot Trading
Buy/sell at current price. You own the asset.
โ Best for: Beginners, long-term holders, low-risk traders
โ ๏ธ No leverage = safer but slower gains
๐ Margin Trading
Trade with borrowed funds (leverage).
โ Best for: Experienced traders, short/mid-term plays
โ ๏ธ Higher riskโlosses can exceed your capital
๐ Futures Trading
Speculate on price without owning the asset. Long/short with leverage.
โ Best for: Pros, hedging, fast moves
โ ๏ธ Very riskyโrequires precision & discipline
When to Use What?
๐ Bull Market: Spot or Margin
๐ Sideways Market: Margin
๐ Bear Market: Futures (short/hedge)
๐งโโ๏ธ Want peace of mind? Stick to Spot.
๐จ Final Tip:
Leverage = more risk.
๐ Keep learning. Trade smart.