#SpotVSFuturesStrategy SpotVsFuturesStrategy is a trading strategy that leverages the price difference between the spot market (immediate delivery) and the futures market (future contracts) to seek profits.

🔍 Brief Summary:

Component Meaning/Details

Spot Buy/sell real assets (e.g., BTC, ETH) on the spot market.

Futures Trade derivative contracts (predict the future price of assets).

Main Strategy Buy in one market, sell in another when there is a price difference (arbitrage or hedge).

Objective Profit from price differences (spread) or hedge against risks.

📈 Simple Example:

BTC in Spot: 60,000 USDT

BTC Futures (1 month): 61,000 USDT

➡️ Arbitrage Strategy:

Buy BTC in Spot (60k), simultaneously sell Futures (61k) → earn 1,000 USDT (excluding fees).

✅ Advantages:

Can earn profits with almost no risk (if spread is stable).

Useful for risk hedging strategies in investment portfolios.

⚠️ Risks to note:

Funding rate (in Futures) may fluctuate unfavorably.

Futures price may not converge to Spot as expected.

Leverage or mismanagement of capital can cause losses.