#SpotVSFuturesStrategy

The Spot vs Futures strategies differ in asset ownership and financial leverage.

Spot trading involves the immediate buying/selling of an asset at the current price, obtaining direct ownership. It is simpler, lower risk (no forced liquidation), and ideal for long-term investors.

Futures trading involves contracts to buy/sell an asset at a predetermined price in the future, without owning the underlying asset. It offers financial leverage, allowing control of larger positions with less capital, and the ability to profit from both upward and downward movements (short selling). It is riskier (liquidation risk) and suited for experienced traders for speculation or hedging.