Spot Trading:*
1. Buying or selling assets for immediate delivery
2. Settlement occurs immediately
3. No margin requirements
Future Trading:*
1. Buying or selling contracts to buy or sell assets at a future date
2. Settlement occurs at a specified future date
3. Margin requirements (leverage)
*Key Considerations:*
1. *Risk Management*: Futures trading involves higher risk due to leverage and potential price movements.
2. *Market Volatility*: Futures trading can be more volatile than spot trading.
3. *Investment Goals*: Spot trading is suitable for investors who want to own assets immediately, while futures trading is suitable for speculators, hedgers, or investors who want to capitalize on price movements.
When deciding between spot and futures trading, consider your investment goals, risk tolerance, and market understanding.
