#SpotVSFuturesStrategy
Support me by following so that God may grant us victory
💹 Spot VS Futures Strategy 💹
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
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, rather you bet on the price rising or falling in the future
2. You use leverage (sometimes 10x, 50x, or even 100x) which exposes you to quick losses
3. Very risky, and you could lose all your capital within minutes
4. Potential profit is quick and high, but fraught with risks
5. Possibility of forced liquidation when the market moves against you, even without losing all your capital
From a religious perspective:
🔹Spot Trading:
1. Permissible according to most scholars as long as immediate possession is achieved
2. Does not involve interest or gambling practices
3. Considered more compliant with Islamic legal controls
4. Doubts can be easily avoided by choosing lawful currencies and not using leverage
🔹Futures Contracts:
1. Prohibited by the majority of scholars due to the presence of uncertainty, gambling, and short selling
2. There is no actual ownership of the currency or traded asset
3. Closer to gambling than to investment, as it relies solely on price fluctuations with high legitimacy and risk