#SpotVSFuturesStrategy

Spot vs Futures Trading Strategy:

🔹 Spot Trading:

• You buy the actual asset (like BTC, ETH).

• You own it and can hold it long-term.

• Strategy: Buy low, sell high.

• Risk Management: Use stop-loss orders and invest only what you can afford to lose.

• Position Size: Based on your total capital and risk tolerance. Usually lower leverage or none.

🔹 Futures Trading:

• You trade contracts speculating on price movements.

• You don’t own the actual asset.

• Strategy: Can go long or short, often used for quick trades.

• Risk Management: Crucial due to leverage. Set tight stop-loss and use margin wisely.

• Position Size: Smaller amounts can control larger trades due to leverage, but that increases risk.