#SpotVSFuturesStrategy

The key differences between **spot trading** and **futures trading** are as follows:

**Summary:**

- **Spot trading** is straightforward: you buy or sell the actual asset at its current price and own it immediately. It suits those seeking direct ownership and lower risk, with no leverage involved.

- **Futures trading** involves contracts to buy or sell assets at a future date for a fixed price, allowing speculation on price movements without owning the asset immediately. It offers leverage, which can increase profits but also risks, making it more suitable for experienced traders or hedgers.

For example, a farmer might use futures contracts to lock in a price for crops to be sold later, protecting against price drops, while a trader might use spot trading to buy gold immediately to hold or sell later.

In essence, spot trading is about *immediate* transactions and ownership, while futures trading focuses on *future* price agreements with potential leverage and hedging benefits.