🌷#SPOT 🌷

💥💥💥Strategy "Spot vs. Futures" 💥💥💥refers to a comparison between two types of asset trading: spot trading and futures trading. Spot trading involves buying and selling assets at the current market price (spot price) for immediate delivery. On the other hand, futures trading involves contracts to buy or sell an asset at a future date at a predetermined price.

Spot Trading:

Immediate Delivery:

Assets are bought and sold for immediate delivery to the buyer, usually within two business days.

Immediate Ownership:

The trader owns the assets they purchased as soon as the transaction is completed.

Focus on Current Prices:

Traders in this type of trading rely on current market prices to make their decisions.

Full Control:

The trader has full control over the assets they own.

Futures Trading:

Futures Contracts:

Traders deal in contracts to buy or sell an asset at a future date at an agreed-upon price.

Commitment to Timeliness:

Both parties in the contract commit to buying or selling the asset on the agreed-upon maturity date.

Hedging:

This type of trading is commonly used to hedge against potential risks in future asset prices.

Key Differences:

Delivery:

In spot trading, delivery is immediate, while in futures trading, delivery is at a future date.