#SpotVSFuturesStrategy

Spot and futures trading are two distinct strategies used in financial markets, each with its own set of characteristics, advantages, and risks.

*Key Differences:*

- *Timing of Transactions*: Spot trading involves immediate exchange of assets, while futures trading involves agreements to buy or sell assets at a predetermined price on a specified future date.

- *Ownership*: In spot trading, ownership of assets transfers immediately, whereas in futures trading, ownership is based on a contract for future delivery.

- *Risk Management*: Spot trading exposes traders to immediate market risks, while futures trading allows for speculation on price movements without owning the underlying asset, offering effective tools for hedging against price risks.