#SpotVSFuturesStrategy Trading in Spot and Futures Contracts... The Difference Between Heaven and Earth
Spot contracts are a clear and straightforward trade where you actually buy the asset, own it, and can sell it whenever you want. Its risks are calculated, and the money stays in your hands. This is a cleaner and purer method, with respect for your ownership, mind, and conscience.
But futures contracts are a disaster walking on its feet. Here, you are not buying anything; you are gambling on the price. If the price goes up a bit, you win; if it goes down a bit, your money is gone in a flash. On top of that, the majority of scholars consider it haram (forbidden) because it resembles gambling. This means no guaranteed ownership and your conscience won't be at ease.
Risk Management
In spot trading, the purchase size is reasonable, stop-loss is logical, and risk is calculated.
In futures, no matter how skilled you are, a significant loss can wipe out your account if the market goes against you for just a moment. Leverage here can literally slaughter you.
If you have your wits about you, stay away from futures contracts; this is not trading, this is a trap. Stick with spot; it's safer for your money.