#SpotVSFuturesStrategy On Binance "SpotVSFuturesStrategy" is a hashtag and educational campaign on Binance Square that helps users understand and compare trading strategies – spot trading vs futures contracts. Here are the key points:

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📈 What is Spot vs Futures?

1. Spot trading

You buy or sell actual assets (e.g., BTC, ETH) at the current price and own them immediately.

Simpler, ideal for beginners and long-term investors.

No leverage → lower risk, no possibility of losing more than the deposited capital.

2. Futures trading

You operate using contracts that speculate on future prices – you do not physically own the asset.

Allows the use of leverage, which increases potential gains (and losses).

You have options for "long" (betting on price increase) and "short" (betting on price decrease), allowing you to profit in both scenarios.

Requires advanced risk management: leverage, stop-losses, margin calls, funding fees.

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🔍 Most discussed strategies on Binance Square

Risk and reward comparison:

Spot = simplicity, no leverage, no liquidation, ideal for long-term holdings.

Futures = leverage, possibility of shorting, but higher risk and complicated mechanism.

Combined strategies:

You hold assets in spot as the core of your portfolio while trading futures for short-term profits or hedging.

Cash-and-carry arbitrage – you buy in spot and short the appropriate amount in futures, taking advantage of price differences.

Hedging – you maintain a position in spot and hedge with a short in futures to protect against declines.

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⚖️ Which strategy for whom?

Trader profile Spot Futures

Beginner ✅ simplicity, no leverage ❌ complexity, liquidation risk

Long-term ✅ safe accumulation ❌ funding fees and contract expiration dates

Advanced ⚠️ only upward horizon ✅ quick reactions to volatility, hedging, shorting