#TradingTypes101
Spot vs. Margin vs. Futures in a Nutshell ๐ฅ๐
Spot
โข Buy/sell now at the market price ๐๐ฐ๐
โข Leverage = 1ร (no loans) ๐ฏโ
โข Zero liquidation risk โ ๐
Use it to HODL and โbuy the dip.โ ๐๐ฅ
Margin
โข Borrow to boost position size (2โ10ร) ๐โ ๏ธ
โข Higher returns, higher liquidation risk โ ๏ธ๐
Use for short-term swings with tight stops. ๐๐
Futures
โข Contracts for a future price ๐๏ธ๐ธ
โข Leverage 10โ125ร, funding fees apply ๐ธโฌ๏ธ
โข No actual asset ownership ๐ฑโ
Use to hedge or bet big on price movements. โฌ๏ธ๐
๐ก Keep each trade โค 2% of your portfolio and always set stop-loss orders! ๐โ ๏ธ๐ฏ