#SpotVSFuturesStrategy

Here's a concise comparison of spot vs. futures trading strategies in exactly 100 words:

**Spot Strategy:**

* **Action:** Buy/sell the actual asset immediately.

* **Goal:** Profit from immediate price movements or long-term holding.

* **Pros:** Simpler, direct ownership, no expiry.

* **Cons:** Requires full capital, limited leverage, vulnerable to price drops.

* **Risk:** Primarily directional (price goes against you).

**Futures Strategy:**

* **Action:** Trade contracts obligating future asset delivery at a set price.

* **Goal:** Speculate on future prices, hedge existing positions, or use leverage.

* **Pros:** High leverage, hedging efficiency, easier shorting, no asset custody.

* **Cons:** Complexity, expiry/rollover risk, margin calls, potential for amplified losses.

* **Risk:** Directional + leverage risk + counterparty risk.

**Core Difference:** Spot involves owning the *asset now*; Futures involve managing *price risk/leverage* for *future dates*. Futures offer more tools but significantly higher complexity and risk.