🔹 First: What is the difference between spot trading and futures contracts?
Spot Trading: Buy/Sell the currency directly.
Futures: An agreement to buy/sell later (without owning the currency)
🔻 Who has a greater impact on price movement?
✅ Currently, futures contracts have more impact than spot trading.
This is due to:
1. Leverage:
In futures, traders use leverage (like 10x, 20x, and even 100x).
This amplifies the volume of trades, making the movements stronger, even if the original capital is small.
2. Liquidation:
When the price moves suddenly, the positions of losing traders (long or short) are liquidated.
This causes a "domino" effect of liquidation = very sharp price movements (Pump or Dump).
3. Buying/Selling Pressure (Short Squeeze / Long Squeeze):
If most traders are holding short positions and the price suddenly rises ➜ a Short Squeeze occurs ➜ strong rise.
And vice versa.
📈 When does spot trading have more impact?
When the market is "healthy" and without high speculative practices.
During new listings (like launching a coin on Binance).
When real capital enters (Spot Buyers) like long-term investors.
💡 Summary:
> Strong and rapid market movements are often caused by futures activity, especially when we see:
Rapid fluctuations.
Huge candles without news.
A sudden significant change in volume.
As for spot trading:
A slower impact on the price.
And is more "stable" in the medium and long term.
