#SpotVSFuturesStrategy Spot vs future strategy typically refers to trading strategies in financial markets, particularly in cryptocurrencies or commodities.
*Spot Trading:*
- Involves buying or selling assets for immediate delivery.
- Prices are based on the current market price.
- Settlement occurs quickly, usually within a couple of days.
*Futures Trading:*
- Involves buying or selling contracts that obligate you to buy or sell an asset at a predetermined price on a specific future date.
- Allows for speculation on price movements without owning the asset.
- Often used for hedging or leveraging positions.
When comparing spot vs future strategies:
- *Spot* is generally considered less risky and more straightforward.
- *Futures* offer leverage, allowing for potentially higher returns but also higher risk