#SpotVSFuturesStrategy
Understanding the difference between spot trading and futures trading is key for any market participant. Spot trading involves the immediate exchange of assets at the current market price, offering direct ownership and simplicity. It is ideal for those who hold long-term positions and those seeking lower risk.
Futures trading, on the other hand, involves contracts to buy or sell an asset at a predetermined price at a future date. This allows speculation on price movements and hedging against volatility, often using leverage, which amplifies both gains and losses.