#SpotVSFuturesStrategy 🎯 Spot vs. Futures Strategy: How to Use Both

1. Hedging Example

A trader holding BTC in the spot market may short BTC Futures to protect against price drops.

2. Arbitrage Strategy

Exploit price differences between spot and futures markets (e.g., Cash-and-Carry Arbitrage):

• Buy the asset in the spot market.

• Sell a futures contract at a higher price.

• Lock in risk-free profit if the math adds up.

3. Leverage & Risk Management

Use futures for short-term leveraged positions, while maintaining long-term exposure through spot holdings.

Before implementing this strategy, ensure:

✅ You understand margin requirements.

✅ You have a clear risk management plan.

✅ You monitor market conditions and expiry dates.$XRP $SOL $BNB