#SpotVSFuturesStrategy

Trading involves various strategies, with spot trading and futures trading being two fundamental approaches.

Spot trading involves the immediate purchase or sale of an asset (like stocks, commodities, or cryptocurrencies) at its current market price for immediate delivery.

It's straightforward, offering direct ownership and transparent pricing driven by real-time supply and demand.

This strategy suits those seeking instant market exposure and is often favored by beginners or long-term investors.

The risk is directly tied to the asset's price fluctuations.

futures trading involves standardized contracts to buy or sell an asset at a predetermined price on a specific future date.

Traders don't own the underlying asset directly; they're speculating on its future price movement or hedging existing positions.

Futures offer leverage, meaning a small initial capital (margin) can control a much larger position, amplifying both potential profits and losses.

This strategy is more complex, involving expiration dates and margin calls, making it generally more suitable for experienced traders and for purposes like hedging against price volatility.