#SpotVSFutureStrategy Strategy Trading: From Spot to Futures — Personal Experience and Tips
Hello to all my like-minded individuals and blog readers!
Today I would like to talk about such an important aspect of trading as choosing a trading strategy: what is preferable — spot trading or futures trading? I have accumulated certain experience that I would like to share, as the right choice of approach significantly affects the final results.
My impressions of spot trading:
Advantages:
- No expiration dates for trades (no need to worry that the contract will expire soon);
- Lower brokerage fees;
- The possibility of long-term holding of assets.
Disadvantages:
- The ability to use borrowed funds is noticeably limited (low leverage);
- The risk of losses during market fluctuations is hard to minimize with standard tools.
Should futures be considered?
Yes, it is definitely worth considering. Here are the pros:
- Access to high leverage, allowing for significantly increased profitability (if risk is managed wisely);
- A wide range of trading opportunities regardless of the price movement of the asset (you can profit from both rising and falling markets);
- Convenience in working with large volumes of assets due to high liquidity.
However, do not forget about the potential difficulties:
- Strict risk control and the ability to close positions in a timely manner are required;
- The need to carefully monitor the expiration dates of contracts.
My recommendation: start by studying the basic principles of both approaches, try different strategies, test robots and advisors. Only by experimenting and evaluating the results can you determine your ideal strategy.
What tools do you use? Are there any success secrets you are willing to share? Let's discuss together!
