#SpotVSFuturesStrategy

Spot contracts are a clear and straightforward trade where you actually buy the asset, own it, and can sell it whenever you like. Its risk is calculated and the money stays in your hands. This is a clean method, with respect for your ownership, mind, and conscience.

But futures contracts are a disaster; you are not buying here, you are gambling on the price. If the price goes up a bit, you win; if it goes down a bit, your money is gone. Moreover, the majority of knowledgeable people see it as prohibited by law because it is similar to gambling. This means you have no guaranteed money and your conscience is not at ease.

Risk Management

In spot trading, the purchase size is reasonable, with a logical stop loss and calculated risk.

In futures trading, no matter how skilled you are, a significant loss can wipe out your account if the market goes against you for just a moment. The leverage here literally kills.

If you have any sense, stay away from futures contracts; they are not a trade, they are a trap. Stick to spot trading, it’s safer for your money.