#SpotVSFuturesStrategy

When discussing trading strategies, an important question arises: what is better between spot trading and futures contracts? Under hashtag #SpotVSFuturesStrategy، , we can analyze the fundamental differences between them and their impact on traders' decisions.

Spot trading relies on buying and selling the asset directly, meaning you actually own the asset (such as cryptocurrencies or stocks). This method is suitable for conservative investors who prefer to deal with tangible assets and avoid using leverage.

On the other hand, futures contracts are derivative financial instruments that allow you to speculate on the price of the asset in the future without owning it. This strategy offers greater opportunities for quick profits using leverage, but it also carries high risks that could lead to significant losses, especially during large fluctuations.

Choosing the ideal strategy depends on several factors such as capital size, risk tolerance, and trading style (day trading, short-term, or long-term). Understanding the difference between these two methods is essential for any trader looking to build an effective trading plan based on clear foundations.