#SpotVSFuturesStrategy Short Futures: Sell a futures contract if you expect the asset's price to decrease. This is much easier than short selling in the spot market for many assets.
* Strategy Example: If you expect oil prices to rise due to geopolitical tensions, you can buy crude oil futures contracts. If you expect a stock market index to fall, you can sell index futures.
2. Hedging:
* Spot: Spot markets offer limited direct hedging capabilities. You might sell an asset to reduce your exposure to price drops, but you don't "lock in" a future price.