#SpotVSFuturesStrategy The "Spot vs. Futures Strategy" hinges on the fundamental difference between immediate asset exchange (spot) and contract-based future delivery (futures). In spot trading, you buy or sell an asset at its current market price for instant settlement and ownership. It's straightforward and generally less risky, suitable for long-term holding or direct market exposure.
Futures trading, however, involves contracts to buy or sell an asset at a predetermined price on a specific future date. Traders don't own the underlying asset directly but speculate on its price movement. This allows for hedging against price fluctuations or leveraging positions to amplify potential gains (and losses). Strategies often involve profiting from price discrepancies between spot and futures markets (arbitrage) or using futures to gain exposure without direct ownership. The choice depends on risk tolerance, capital, and market outlook.