#SpotVSFuturesStrategy
Spot vs Futures Trading Strategy
Spot trading involves buying or selling assets for immediate delivery, while futures trading involves contracts to buy or sell assets at a set price on a specific date. Spot trading is ideal for investors seeking long-term holdings, while futures trading suits traders looking to profit from price movements without owning the asset. Spot trading eliminates counterparty risk associated with futures contracts. Futures trading offers leverage, allowing traders to amplify potential gains, but also increases risk. Understanding both strategies helps traders choose the best approach based on their goals and risk tolerance. Each has its advantages and disadvantages.