#SpotVSFuturesStrategy #BTC120kVs125kToday
Spot Trading Strategy Explained
Spot trading involves buying and selling financial assets—such as stocks, cryptocurrencies, or commodities—for immediate settlement at the current market price. It’s a simple, real-time approach ideal for beginners and long-term investors who prefer transparency and lower risk.
A common spot trading strategy is trend following. Traders identify upward or downward trends using technical indicators like Moving Averages, RSI (Relative Strength Index), or MACD. Entry points are based on trend confirmations, while stop-loss orders help manage risk by limiting losses during unexpected reversals.
Unlike futures trading, spot trading doesn’t involve leverage or contracts with expiration dates, reducing complexity and the risk of liquidation. Traders own the actual asset, allowing for flexible holding periods based on market conditions.
This strategy works best in volatile yet liquid markets, such as crypto or forex, where price action offers regular opportunities. Spot trading rewards patience, discipline, and a solid understanding of technical patterns and risk management.
