"What is the difference between spot trading and futures?🤔 A simplified explanation for beginners!"
🔹 Spot Trading:
You buy the currency and actually own it.
Profit is only possible if the price rises.
Example: You bought BTC at $60,000, sold it at $65,000 → Your profit = $5,000.
🔸 Futures Trading:
You do not own the currency; instead, you trade on the price movement (up or down).
You can profit even if the price drops, using short selling.
You can use leverage (for example, 10x) → which means $1,000 turns into a trade size of $10,000.
⚠️ But be careful: futures carry higher risk and require good capital management.
💬 Question for the followers:
Have you tried futures trading? Or do you prefer regular trading?
⬇️ Write your opinion, let's all benefit!