#SpotVSFuturesStrategy Futures Trading:
Contracts for Future Delivery:
Traders enter into contracts to buy or sell an asset at a specific date in the future at a price fixed at the time the contract is made.
No Ownership of the Asset:
Owning a futures contract does not imply ownership of the underlying asset.
Potential for High Profit:
Due to the use of leverage, futures trading can yield significant profits, but it is also associated with increased risk.
Risk of Liquidation:
When using leverage, there is a risk of liquidation of the position if the asset's price moves against the trader's position.
Volatility:
Futures markets are more volatile than spot markets due to the use of leverage and speculative components.
In conclusion: Spot trading is suitable for those seeking simplicity and stability, while futures trading may be attractive to experienced traders willing to take high risks for potential high profits.