#SpotVSFuturesStrategy refers to two different approaches to trading in financial markets, including cryptocurrencies. Here’s how they work:
*Spot*
- Buying and selling assets at the current market price.
- Payment is made immediately.
- The asset is delivered to the buyer.
*Futures*
- A contract that obligates the purchase or sale of an asset at a predetermined price on a future date.
- Immediate payment is not required.
- The contract is settled on the expiration date.
*Strategies*
- *Spot*: Suitable for long-term investors or those who wish to own the asset.
- *Futures*: Suitable for traders looking to capitalize on short-term price movements or to hedge risks.
*Advantages of Futures*
- Greater liquidity
- Greater flexibility
- Possibility of leverage
*Risks*
- Greater risk of losses due to leverage
- Risk of forced liquidation
