#SpotVSFuturesStrategy Spot trading and futures trading are two different strategies used in financial markets.
*Key Differences:*
- *Settlement Time*: Spot trading involves immediate delivery and settlement, usually within two business days (T+2), while futures trading involves contracts for future delivery.
- *Price Determination*: Spot prices reflect current market prices, whereas futures prices are determined by expected future market prices.
- *Flexibility*: Spot trading offers more flexibility in terms of trading volume and immediate access to markets.
*Choosing Between Spot and Futures:*
- *Spot Trading*: Suitable for investors seeking immediate transactions and flexibility.
- *Futures Trading*: Ideal for investors looking to hedge against future price fluctuations or speculate on future market movements ¹ ².