#SpotVSFuturesStrategy

A simple and quick comparison between spot trading and futures contracts:-

1- Spot Trading

🔹 Meaning: Buying the asset (like Bitcoin or a stock) and holding it directly.

🔹 Ownership: You actually own the currency.

🔹 Risks: Lower risk, but without leverage.

🔹 Profit: Realized only when the price rises.

🔹 Example: You bought 1 BTC at a price of $30,000, and sold it at a price of $35,000$ → Profit $5,000.

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2- Futures Trading

🔹 Meaning: A contract to buy or sell an asset in the future at an agreed-upon price, without actually owning the asset.

🔹 Ownership: You do not own the currency, you only trade on the price.

🔹 Risks: Higher due to the use of leverage.

🔹 Profit: Possible to make a profit whether the price rises or falls (Long / Short).

🔹 Example: You opened a Long contract on BTC with 10x leverage, the price rose by 5% → Your profit 50%.