#SpotVSFuturesStrategy Trading on financial markets is a vast field that involves various strategies, among which spot trading and futures trading. Each has its own characteristics and risks that make it suitable for different types of traders.
Spot trading means buying or selling a financial asset (like cryptocurrencies or stocks) at its current price for immediate delivery. Here, you own the asset directly, and gains and losses are directly tied to price fluctuations, which is considered less complex and less risky.
In contrast, futures trading involves contracts to buy or sell an asset at a predetermined price at a future date. You do not own the asset itself, but you trade a derivative contract. This type allows for leverage, which multiplies potential gains but significantly increases risks. It is used for speculation or to hedge against price fluctuations.
The choice of strategy depends on your objectives, risk tolerance, and market experience.
