#DayTradingStrategy

The difference between spot trading and futures trading

Spot trading involves buying a certain amount of a specific currency at a certain price at the time of purchase, and you can hold it until a certain time when its price may rise or fall.

On the other hand, futures trading involves betting on a price increase (buying) or a price decrease (selling), meaning you place a trade, for example, buying an amount of $10 and setting a leverage, for instance, 10% - leverage is a tool that allows you to control a large trading position with a limited capital.

Example:

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

You can set the account type as isolated or variable. Isolated keeps a portion of the amount you enter separate, and in case of loss, you only lose the amount you entered. In contrast, the variable account loses the entire balance in the futures account upon loss. This is considered haram (forbidden) in Sharia.