#SpotVSFuturesStrategy

The tag #SpotVSFuturesStrategy highlights the fundamental differences between spot trading strategies and futures contracts, which is a central topic for every trader seeking to understand market tools and choose the most suitable ones.

🔹 Spot trading relies on buying the asset directly at market price, making it suitable for beginners and long-term investors. It is characterized by its simplicity and lack of liquidation risk, but it requires a larger capital and does not allow for profit from price declines.

🔸 Futures contracts allow trading on price movements without owning the asset, with the possibility of using leverage. This strategy provides profit opportunities in both directions (upward and downward), but it involves high risks, especially with the use of large leverage.

📌 Choosing a strategy depends on your experience, risk tolerance, and financial goals. Some prefer to combine both types to achieve a balance between safety and risk.