#SpotVSFuturesStrategy The difference between

Many new traders ask about the difference between trading in the spot market and trading in futures contracts.

✅ In Spot, you buy the currency directly and own it, like buying BTC or ETH and storing it in a wallet, and you only profit if the price goes up.

⚡ In Futures, you don't actually own the currency; rather, you trade on the price going up or down, with the possibility of using leverage, but the risk is higher here, and losses can be swift if you do not manage risks properly.

🎯 My advice to every beginner: Start trading in Spot first to understand the market well, then move to Futures with clear plans and strong capital management.

Trading strategies in financial markets are diverse, with one of the most prominent being the spot market strategy versus the futures contract strategy. The spot market is where assets are bought or sold and delivered immediately, and it is often used for spot trading in currencies, commodities, or stocks. Traders in this market focus on short-term movements and benefit from rapid price changes.

On the other hand, futures contracts are agreements to buy or sell a specific asset at a predetermined price on a future date. This strategy is useful for hedging against market fluctuations and is frequently used by investors and institutions to manage risks. Futures contracts also allow for greater opportunities to use leverage.