#SpotVSFuturesStrategy Spot trading involves the immediate purchase and sale of an asset at its current market price, known as the "spot price." When you engage in spot trading, you take direct ownership of the underlying asset. It's generally simpler and less risky, as there's no leverage involved, meaning you only risk the capital you invest. Spot trading is ideal for long-term investments and those who prefer direct ownership and less complexity.

Futures trading, conversely, involves a contract to buy or sell an asset at a predetermined price on a specified future date. You don't own the actual asset until the contract expires. Futures often utilize leverage, allowing traders to control larger positions with a smaller initial investment. While this can amplify potential profits, it also significantly increases the risk of amplified losses and margin calls. Futures are suitable for speculation on price movements and hedging against future price fluctuations, often attracting more experienced traders.