#TradingTypes101

Spot vs. Margin vs. Futures in a Nutshell ๐Ÿ”ฅ๐Ÿ‘

Spot

โ€ข Buy/sell now at the market price ๐Ÿ‘๐Ÿ’ฐ๐Ÿš€

โ€ข Leverage = 1ร— (no loans) ๐Ÿ’ฏโœ…

โ€ข Zero liquidation risk โœ…๐Ÿ‘

Use it to HODL and โ€œbuy the dip.โ€ ๐Ÿš€๐Ÿ”ฅ

Margin

โ€ข Borrow to boost position size (2โ€“10ร—) ๐Ÿ“ˆโš ๏ธ

โ€ข Higher returns, higher liquidation risk โš ๏ธ๐Ÿ“‰

Use for short-term swings with tight stops. ๐Ÿ“‰๐Ÿ‘

Futures

โ€ข Contracts for a future price ๐Ÿ—“๏ธ๐Ÿ’ธ

โ€ข Leverage 10โ€“125ร—, funding fees apply ๐Ÿ’ธโฌ†๏ธ

โ€ข No actual asset ownership ๐Ÿ’ฑโœ…

Use to hedge or bet big on price movements. โฌ†๏ธ๐Ÿš€

๐Ÿ’ก Keep each trade โ‰ค 2% of your portfolio and always set stop-loss orders! ๐Ÿ‘โš ๏ธ๐Ÿ’ฏ

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