#SpotVSFuturesStrategy

Spot trading involves the immediate purchase and sale of an asset at the current market price (spot price) with the intention of taking immediate delivery. Futures trading, on the other hand, involves contracts to buy or sell an asset at a predetermined future date and price

Differences include....

Spot Trading:

Immediate Delivery:

Transactions are settled immediately, with the buyer taking ownership of the asset right away. 

Lower Risk:

Generally considered less risky than futures trading because there is no leverage or borrowing involved. 

Futures trading ..

Contract-Based:

Involves agreements to buy or sell an asset at a future date, not the immediate exchange of the asset. 

Higher Risk:

The use of leverage in futures trading can lead to significant losses if the market moves against the trader.