#SpotVSFuturesStrategy When deciding between spot and futures trading strategies, consider your investment goals, risk tolerance, and market understanding.

*Spot Trading*

- *Immediate Ownership*: Buy or sell assets for immediate delivery, transferring ownership instantly.

- *Lower Risk*: Limited to the asset's real-time value, without leverage.

- *Flexibility*: Suitable for short-term traders and day traders.

- *No Expiration*: Trades settle promptly, without future obligations.

*Futures Trading*

- *Contractual Obligation*: Buy or sell contracts for future delivery at a predetermined price.

- *Leverage*: Allows traders to control larger positions with smaller capital, amplifying gains and losses.

- *Hedging*: Enables risk management by locking in prices for future transactions.

- *Expiration Date*: Contracts settle on a specific date, requiring position closure or rollover.¹

*Key Differences*

- *Pricing Mechanism*: Spot prices reflect real-time supply and demand, while futures prices are based on expected future market conditions.

- *Risk Tolerance*: Spot trading suits risk-averse traders, while futures trading is better for those comfortable with higher risks.

- *Capital Requirements*: Spot trading requires full capital upfront, whereas futures trading allows for leverage.²

*Choosing a Strategy*

- *Short-term Focus*: Spot trading for immediate transactions and short-term gains.

- *Long-term Approach*: Futures trading for hedging and speculating on future price movements.

- *Risk Management*: Combine spot and futures strategies to optimize trading performance and mitigate risks.