#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 size.
3. Less risky compared to futures contracts, as you do not lose more than you invested.
4. Profit is slower but more stable.
5. There is no risk of forced liquidation.
🔹Futures Contracts:
1. You do not own the asset, but bet on the price rising or falling in the future.
2. Uses leverage (sometimes 10x, 50x, or even 100x), exposing you to quick losses.
3. Very risky, and you could lose your entire capital within minutes.
4. Potential profit is quick and high, but fraught with risk.
5. Possibility of forced liquidation when the market moves against you, even without losing all your capital.
From a religious perspective: