#SpotVSFuturesStrategy
Here's a concise breakdown of Spot vs. Futures Trading Strategy in under 100 words:
**Spot Strategy:**
* **Action:** Buy/sell the actual asset (e.g., BTC, stock) immediately at the current price.
* **Goal:** Profit from price appreciation. Hold the asset long-term or trade short-term swings.
* **Pros:** Simpler, direct ownership, no expiry.
* **Cons:** Requires full capital, limited profit if prices fall (unless shorting, which is complex/restricted).
**Futures Strategy:**
* **Action:** Trade contracts obligating future buy/sell of an asset at a set price. No immediate asset delivery.
* **Goal:** Profit from price direction (long/short), hedge spot positions, or gain leverage.
* **Pros:** Leverage (amplifies gains/capital efficiency), easy shorting, hedging tools.
* **Cons:** Complexity, leverage amplifies losses, funding rates, contract expiry, higher risk.
**Key Difference:** Spot involves owning the asset; Futures are leveraged bets on future prices, offering more tools but significantly higher risk.