#SpotVSFuturesStrategy

The difference between spot trading and futures trading

Spot trading refers to buying a certain amount of a specific currency at a specific price at the time you buy it, and you can hold it for a certain period until its price rises or falls.

On the other hand, futures trading is a form of betting on the price increase by buying or the price decrease by selling. For example, you can set up a trade by buying an amount of $10 and set a leverage of, for instance, 10% - leverage is a tool that allows you to control a large trading position with limited capital.

Example:

- A leverage of 10x means that every $1 in your account can control a position worth $10.

You can also set the account type as isolated or variable. Isolated accounts isolate a portion of the amount you put in, and in case of a loss, you only lose the amount you invested. In contrast, the variable account loses the entire balance in the futures account in case of a loss. This is considered futures trading to be forbidden in Sharia.