#SpotVSFuturesStrategy "Spot and Futures Strategy" refers to the different approaches that traders apply when interacting with financial markets, particularly comparing trading on the spot market and the futures market. These two markets offer different ways to gain exposure to assets such as cryptocurrencies, commodities, or currencies, and are therefore associated with different strategies, risks, and advantages.
Here is a breakdown of what each entails and how they differ:
1. Spot Market (Spot Trading):
* Definition: Spot trading involves the immediate purchase and sale of an asset at its current market price for immediate delivery and ownership. "On the spot" means that the transaction is settled almost instantly (usually within one to two days, depending on the asset and the market).
* Ownership: When you buy in the spot market, you gain direct ownership rights to the underlying asset. For example, if you buy Bitcoin on a spot exchange, you own the actual Bitcoin that you can withdraw to your private wallet, use for purchases, or stake. $ADA
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