#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 bet on the price rising or falling in the future

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

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

4. Potential profit is fast and high, but it carries risks

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

From a religious perspective:

🔹Spot Trading:

1. It is permissible according to most scholars, provided that immediate exchange is achieved

2. Does not involve usury or gambling practices

3. Considered more compatible with Islamic legal regulations

4. Can easily avoid doubts by choosing lawful currencies and not using leverage

🔹Futures Contracts:

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

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

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

4. Contains high legal doubts and significant financial risk