#BreakoutTradingStrategy

The difference between spot trading and futures trading

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

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

Example:

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

You can also set the account type to isolated or variable. The isolated type isolates part of the amount you enter, and in case of loss, you only lose the amount you entered. However, the variable type, unlike the isolated one, means that in case of loss, you lose the entire balance of the account in the futures contracts. This is considered forbidden (haram) by Islamic law.