According to Binance Exchange, #SpotVSFuturesStrategy highlights the differences between spot and futures trading.
*Spot Trading*: Buying or selling assets for immediate delivery at current market prices. Settlement occurs within two business days.
*Futures Trading*: Buying or selling contracts for assets at predetermined prices on specific future dates. Allows for speculation, hedging, and leverage.
*Key differences*: Settlement timing, risk levels, and purposes. Spot trading suits immediate asset ownership, while futures trading is ideal for speculation, hedging, or risk management.
*Strategy considerations*: Investment goals, risk tolerance, and market understanding. Binance offers both spot and futures trading options, allowing users to choose the best strategy for their needs [1].