#SpotVSFuturesStrategy When deciding between spot and futures trading strategies consider the following key differences

Spot Trading

Immediate delivery Buy or sell assets for immediate delivery

No leverage No borrowed funds are used

Lower risk Less potential for significant losses

Suitable for Short term traders risk averse investors

Futures Trading

Contract based Trade contracts for future delivery at a predetermined price

Leverage Use borrowed funds to amplify potential gains (and losses)

Higher risk Greater potential for significant losses