#SpotVSFuturesStrategy Spot vs. Futures: Understanding the Differences

In the dynamic world of finance, it is crucial to understand the differences between trading in spot and with futures, as they represent distinct approaches to interacting with the markets.

When we talk about spot, we refer to the buying or selling of a financial asset, such as a currency, a commodity, or a stock, for immediate delivery and settlement. This means that the transaction is executed at the current market price and the transfer of ownership occurs almost instantly. When trading in spot, you obtain direct ownership of the underlying asset. It is like going to a store and buying something at that moment: you pay and take it with you. The simplicity and immediate delivery are its main features, making it ideal for those seeking direct and short-term exposure to the asset.