#SpotVSFuturesStrategy his comparison outlines key strategic differences between spot and futures trading to help you determine which approach better suits your investment goals.
## Core Differences
1. **Ownership**
- Spot: You own the actual asset
- Futures: Contract to buy/sell at future date (no asset ownership)
2. **Leverage**
- Spot: Typically 1:1 (some brokers offer margin)
- Futures: Often 5x-125x leverage available
3. **Settlement**
- Spot: Immediate settlement (T+2 in stocks)
- Futures: Settlement at contract expiration