#SpotVSFuturesStrategy Spot trading and futures trading differ fundamentally in how assets are exchanged, the timing of transactions and the strategies they support. While spot trading involves immediate settlement and asset ownership, futures trading uses contracts to set a future price and date, offering a structured way to manage price expectations.
These differences affect liquidity, risk levels and the flexibility each method offers, shaping how traders and businesses approach their market strategies. Understanding these contrasts helps clarify when and why each trading method might be used.