#SpotVSFuturesStrategy

💹 Spot VS Futures Strategy 💹

Spot Trading:

1. You buy the asset directly and actually own it

2. No leverage or 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. No risk of forced liquidation

🔹Futures Contracts:

1. You do not own the asset, but bet on the price going up or down in the future

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

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

4. Potential profit is quick and high, but it is fraught with risks

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

From a religious perspective:

🔹Spot Trading:

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

2. Does not involve interest or gambling practices

3. Considered more compliant with Islamic legal controls

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

🔹Futures Contracts:

1. Prohibited by the majority of scholars due to the presence of uncertainty, gambling, and short selling

2. There is no real ownership of the currency or the traded asset

3. Closer to gambling than to investing, due to betting on price fluctuations only

4. Contains high legal suspicions and significant financial risk