#SpotVSFuturesStrategy

Spot vs. Futures

Spot and futures are two ways of trading assets, but they differ in timing and investor goals. A spot transaction involves the immediate purchase or sale of an asset at the current market price – delivery usually happens within two business days. Futures contracts are agreements to buy or sell an asset at a set price on a specific date in the future. They're often used for speculation or hedging against price changes. Spot trading is simpler and more direct, while futures offer greater flexibility but come with higher risk and require a margin deposit. Both instruments play key roles in commodity and financial markets.