#SpotVSFuturesStrategy

Spot vs. Future Trading: Key Differences

**Spot Trading:**

This is immediate exchange. You buy or sell an asset (like crypto, stocks, or commodities) at its current market price, and the transaction settles instantly or within a short period (usually T+2). You directly own the asset upon settlement. It's straightforward: pay now, get asset now. Ideal for immediate possession or short-term trading.

**Future Trading:**

Here, you trade contracts agreeing to buy or sell an asset at a predetermined price on a specific *future* date. No asset changes hands immediately; you speculate on the future price. Futures are standardized, traded on exchanges, and involve leverage (amplifying gains *and* losses). Used for hedging risk or leveraged speculation.

**In short:** Spot = immediate ownership. Futures = contracts for future prices, often with leverage. Spot suits direct holding; futures suit hedging or leveraged bets.