#SpotVSFuturesStrategy 💹

Spot Trading:

1. You buy the asset directly and actually own it

2. There is no leverage or it is very limited, reducing the potential loss size

3. Less risky compared to futures contracts, as you do not lose more than you invested

4. Profit is slower but more stable

5. There is no risk of forced liquidation

🔹Futures Contracts:

1. You do not own the asset, but bet on the future rise or fall of the price

2. Uses leverage (sometimes 10x, 50x, or even 100x) which exposes you to quick losses

3. Highly risky, and you could lose all your capital within minutes

4. Potential profit is fast and high, but fraught with risk

5. Possibility of forced liquidation when the market moves against you, even without losing all your capital

From a religious perspective:

🔹Spot Trading:

1. Permissible according to most scholars provided that immediate exchange is achieved

2. Does not involve usury or gambling practices

3. Considered more compliant with Islamic legal controls

4. Doubts can be easily avoided by choosing lawful currencies and not using leverage

🔹Futures Contracts