#SpotVSFuturesStrategy

1. Definition

spot Trading: Immediate purchase/sale of assets.

Futures Trading:Agreement to trade assets at a set price in the future.

2. Ownership

Spot: You own the asset.

Futures: You hold a contract, not the asset.

3. *Leverage

Spot usually needs full capital.

Futures allow high leverage, increasing both risk and return.

4. Risk

Spot: Lower risk, no expiry.

Futures: Higher risk due to volatility and margin calls.

5. Profit Strategy

Spot: Profits from rising asset prices.

Futures: Profit from both rising and falling prices.

6.Use Case

Spot suits long-term investors.

Futures fit active traders and hedgers.

7Costs

Spot: Simple transaction fees.

Futures: Includes margin and rollover costs.

8-Conclusion:

Choose spot trading for safety and ownership. Use futures trading for speculation, hedging, and high-risk strategies.