#SpotVSFuturesStrategy Spot trading and futures trading fundamentally differ in the way assets are exchanged, the timing of transactions, and the strategies they support. While spot trading involves immediate settlements and ownership of assets, futures trading uses contracts to establish a future price and date, offering a structured way to manage price expectations.

These differences impact liquidity, risk levels, and the flexibility each method provides, shaping how traders and businesses approach their market strategies. Understanding these differences helps clarify when and why each trading method may be used.

Spot trading is characterized by its immediacy — assets are bought or sold for nearly instant settlement based on the current market price. This direct approach means that buyers immediately gain ownership of the asset, making it straightforward and transparent.