📈 #SpotVSFuturesStrategy : which is more advantageous?
In the world of trading and investments, choosing between a strategy based on spot contracts or futures can make the difference between consistent profits and poorly calculated risks. Here’s a quick look at the key points of each:
🔹 Spot Strategy
- Immediate execution: buy or sell the asset at the current market price.
- Ideal for short-term trades or physical purchases (e.g., commodities).
- Less leverage: reduces risk, but also potential profit.
🔸 Futures Strategy
- Derivative contracts: agreements to buy/sell at a future date, at a predetermined price.
- High leverage: allows for amplified gains… and losses.
- Hedging and speculation: useful for protecting against fluctuations or betting on market movements.
💡 In summary
The Spot vs Futures strategy is not a one-size-fits-all choice. It depends on:
- your time horizon
- the level of risk you are willing to take
- the asset you are trading
👉 If you seek control and immediacy, the spot is for you. If instead you focus on predicting future trends or want to hedge against variations, futures are the right tool.