#SpotVSFuturesStrategy

#SpotVSFuturesStrategy Trading strategy vs. trading strategy depends on your investment goals and risk tolerance.

* (Spot)*

- Immediate trading of assets such as cryptocurrencies, commodities, or stocks

- Immediate settlement of transactions

- Ownership of assets directly after purchase

- No liquidation risk due to leverage

- Suitable for investors who prefer short-term trading and taking advantage of current prices

* (Futures)*

- Trading of futures contracts for assets

- Settlement on a specified future date

- Leverage can be used to enhance potential returns

- Carries higher risks due to leverage and market volatility

- Suitable for investors who want to speculate on the future or hedge against risks

*Key Differences*

- *Leverage*: Futures contracts allow for leverage, while leverage is not available in spot trading.

- *Settlement*: Spot transactions settle immediately, while futures contracts settle on a specified future date.

- *Ownership*: Ownership of assets is directly to the buyer, while there is no ownership until the settlement date ¹ ².

*Tips for Choosing a Strategy*

- Define your investment goals and your ability to tolerate risks.

- If you prefer short-term trading and taking advantage of current prices.