What is Spot and Future Trading on Binance?

Spot trading means buying or selling a cryptocurrency at its current market price. When you place a spot trade on Binance, the asset is transferred to your wallet immediately after the trade is completed.

You fully own the crypto you buy. There is no leverage involved, and you can hold, sell, or transfer the asset as you wish.

Example: If you buy 1 ETH at $3,000, you now own that ETH and can withdraw or store it.

What is Futures Trading on Binance?

Futures trading allows you to speculate on the price direction of a cryptocurrency without owning the asset itself. You can take a long position (expecting the price to rise) or a short position (expecting the price to fall).

Futures contracts can be traded with leverage, meaning you can open positions larger than your actual balance. While this increases potential profit, it also increases potential risk.

Example: With 10x leverage, a 1% move in the market results in a 10% gain or loss on your position.

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