#SpotVSFuturesStrategy: Navigating Two Worlds of Trading
Spot and Futures trading demand distinct strategies due to their differing structures. In Spot trading, I focus on long-term holds, technical levels, and dollar-cost averaging. It’s more suitable for building positions gradually and riding trends without leverage. Risk is managed through diversification and setting clear profit targets.
In contrast, Futures trading is short-term, fast-paced, and ideal for volatility plays. I use tighter stop losses, smaller position sizes, and strict leverage controls to minimize liquidation risks. Strategies like scalping or breakout trading work well in this space.
Position sizing is key—larger in Spot due to lower risk, smaller in Futures due to leverage exposure. The goal: maximize gains while managing downside in both environments.