#SpotVSFuturesStrategy
Understanding the difference between spot and futures trading is key to building a smart #SpotVSFuturesStrategy. Spot trading is straightforward—you own the asset, no leverage, and lower risk. It’s ideal for long-term investors and those who prefer less volatility. Futures trading, on the other hand, allows for leverage and opens the door to big gains—but also big losses. Futures are powerful for short-term strategies, hedging, or profiting in downtrends. The biggest mistake traders make is jumping into futures without understanding liquidation risks or margin calls. Choose your strategy based on your risk tolerance, time horizon, and experience. Don’t gamble—strategize.