#SpotVSFuturesStrategy #SpotVSFuturesStrategy

💹 Spot VS Futures Strategy 💹

Spot Trading:

1. You buy the asset directly and actually own it

2. There is no leverage or it is very limited, reducing the potential loss

3. Less risky compared to futures, as you do not lose more than you invested

4. Profits are slower but more stable

5. No risk of forced liquidation

🔹Futures Contracts:

1. You do not own the asset, but bet on the price going up or down in the future

2. Uses leverage (sometimes 10x, 50x, or even 100x) which exposes you to rapid losses

3. Very risky, and you could lose all capital within minutes

4. Potential profit is quick and high, but fraught with risks

5. Possibility of forced liquidation when the market moves against you, even without losing all capital

From a religious perspective:

🔹Spot Trading:

1. Permissible according to most scholars provided that immediate exchange is achieved

2. Does not involve usurious interest or gambling practices

3. Considered more compliant with Islamic legal guidelines

4. Can easily avoid doubts by choosing permissible currencies and not using leverage

🔹Futures Contracts:

1. Prohibited by the majority of scholars due to the presence of uncertainty, gambling, and short selling

2. There is no real ownership of the currency or traded asset

3. Closer to gambling than to investing, due to betting on price fluctuations only

4. Contains high legal doubts and significant financial risk