#SpotVSFuturesStrategy 🔍 Comparative Analysis: Spot Trading vs. Futures (Strategies)

### **1. Basic Concepts and Operating Mechanisms**

- **Spot Trading**:

- **Definition**: Buying/selling assets (cryptocurrencies, commodities, currencies) at the current market price, with **immediate** settlement (1-2 business days). Transfers real ownership of the asset.

- **Example**: Buying Bitcoin at $60,000 today and receiving it in your wallet instantly.

- **Futures Trading**:

- **Derivative Contracts**: Agreements to buy/sell an asset on a **future date** at a predetermined price. There is no immediate transfer of the underlying asset.

- **Example**: Contracting to buy Bitcoin at $65,000 to settle in 3 months, regardless of the price then.

### ⚖️ **2. Key Differences**

| **Feature** | **Spot Trading** | **Futures Trading**

| **Settlement** | Immediate | On a future date (contractual) |

| **Ownership of the asset** | Yes (direct) | No (speculation on price) |

| **Leverage** | Limited (own capital) | High (up to 100x in crypto) |

| **Costs** | Low (only commissions) | High (commissions + *funding rates*) |

| **Main Risk** | Short-term volatility | Liquidations due to leverage |