#SpotVSFuturesStrategy #SpotVsFutureStrategy

In crypto trading, the Spot vs Futures Strategy involves leveraging the differences between spot and futures markets to maximize profit or hedge risk. In the spot market, traders buy or sell actual cryptocurrencies for immediate settlement. In contrast, futures contracts allow traders to speculate on price movements without owning the asset, often using leverage.

A popular strategy is the cash-and-carry arbitrage, where a trader buys BTC on the spot market and sells a futures contract at a premium. This locks in a risk-free profit if held until expiry. Conversely, directional traders use futures to go long or short with leverage, while managing risks in spot holdings. Combining both offers flexibility, hedging, and capital efficiency.