#SpotVSFuturesStrategy Spot Trading:
1. You buy the asset directly and actually own it.
2. There is no leverage or it is very limited, which reduces 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 rather bet on the future rise or fall of the price.
2. You use leverage (sometimes 10x, 50x, or even 100x), which exposes you to rapid losses.
3. Extremely risky, and you could lose your entire capital within minutes.
4. The potential profit is fast and high, but it is fraught with risks.
5. Possibility of forced liquidation when the market moves against you, even without losing all your capital.