#SpotVSFuturesStrategy
In spot trading, you directly own the underlying asset, whereas in futures trading, you're trading a contract that speculates on the asset's future price.
Spot trading typically doesn't involve leverage, while futures trading allows for higher leverage, amplifying both potential profits and losses.
Risk
Spot trading is generally considered lower-risk, with maximum loss limited to the initial investment. Futures trading carries higher risk due to leverage and potential liquidation.
Spot trading is straightforward and suitable for beginners, while futures trading is more complex and requires a deeper understanding of markets and risk management.