#SpotVSFuturesStrategy
๐ Spot vs Futures Trading: Key Differences Explained โ๏ธ
๐น In spot trading, you directly own the asset (like Bitcoin or stocks).
๐น In futures trading, you're dealing with contracts that speculate on the future price of the asset. ๐ฎ๐
๐ฅ Leverage:
Spot trading usually involves no leverage ๐ซ, while futures trading often uses high leverage, which can boost gains ๐ฐ โ but also amplify losses โ ๏ธ๐.
โ ๏ธ Risk Factor:
Spot trading = lower risk โ (you can only lose what you invest).
Futures trading = higher risk ๐จ due to leverage and possible liquidation โ๐ธ.
๐ถ Ease of Use:
Spot trading is simple and beginner-friendly ๐ข.
Futures trading is advanced and needs strong knowledge of the market and risk management ๐ง ๐.