#SpotVSFuturesStrategy
The Spot vs Futures strategy is like choosing between "playing now" or "placing a bet for later"—and each has its own style and goals. Let's break it down from various angles so you can determine which is more suitable for your investment or trading strategy 🔍📈
🟢 Spot Strategy: Immediate Execution
Characteristics:
Direct purchase of assets (such as stocks, crypto, or commodities)
You have full ownership once the transaction is completed
Suitable for both short-term and long-term investments
Advantages:
Price transparency & fast execution
No rollover fees or expiry dates
Suitable for investors who want to own real assets
Disadvantages:
Cannot profit from price declines (except for more complex short selling)
Requires a larger capital compared to Futures
🟡 Futures Strategy: Buy Contracts, Not the Assets
Characteristics:
Based on an agreement to buy or sell assets in the future at a predetermined price
Can be used for hedging, speculation, or leverage
Advantages:
Can profit from both upward and downward movements
Capital can be lighter due to leverage
Suitable for active traders with technical strategies
Disadvantages:
There is a risk of margin call if the market moves against you
Subject to rollover fees if not closed before expiration
More complex & requires sharp analysis