#SpotVSFuturesStrategy Spot trading and futures trading fundamentally differ in the way assets are exchanged, the timing of transactions, and the strategies they support. While spot trading involves immediate settlements and ownership of assets, futures trading uses contracts to establish a future price and date, offering a structured way to manage price expectations.

These differences affect liquidity, risk levels, and the flexibility each method offers, shaping how traders and businesses approach their market strategies. Understanding these differences helps clarify when and why each trading method may be used.

Spot trading is defined by its immediacy—assets are bought or sold for nearly instant settlement based on the current market price. This direct approach means buyers immediately gain ownership of the asset, making it simple and transparent.

In contrast, futures trading is based on contracts where traders agree to buy or sell an asset in the future at a predetermined price.