#SpotVSFuturesStrategy
Spot VS Futures Strategy can be summarized as follows:
Spot Trading Strategy
- *Direct access to assets*: You have direct access to the underlying assets.
- *Immediate settlement*: Settlements occur immediately.
- *Uses*: Long-term investment, simple trading.
- *Price discovery*: Affected by immediate supply and demand.
Futures Trading Strategy
- *Access to leveraged positions and short selling*: You have access to leveraged positions and short selling.
- *Settlement on a future date*: Settlements occur on a specified future date.
- *Uses*: Speculation, hedging, arbitrage, advanced trading strategies.
- *Price discovery*: Affected by expectations of future price movements.
Risk Management
- *Stop-loss orders*: Setting a loss limit to reduce risks.
- *Take-profit orders*: Setting a profit limit to secure gains.
- *Position sizing*: Determining the appropriate position size for risk management.
Trading Strategies
- *Moving averages*: Using moving averages to identify market trends.
- *Relative Strength Index (RSI)*: Using the RSI to identify overbought or oversold conditions.
- *Technical analysis*: Using technical analysis to identify support and resistance levels.