The #SpotVSFuturesStrategy is a widely used strategy by traders in the cryptocurrency market and other assets to take advantage of the differences between the spot price and the futures price of an asset.

🔍 What does it mean?

Spot: direct purchase of the asset in the current market (e.g., buying BTC now).

Futures: contracts that speculate on the future price of the asset (e.g., betting that BTC will rise or fall by a certain date).

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📈 How does the strategy work?

The idea is to take advantage of the price difference between the spot market and the futures market, which can occur for various reasons (such as supply and demand, financing rates, speculation, etc.).

Examples of strategy:

1. Cash and Carry Arbitrage (rise of the future)

Buy the asset in the spot (e.g., BTC)

Sell the same amount in the future (short)

Profit = price difference (spread) – fees

Works when the future is more expensive than the spot.

2. Reverse Cash and Carry (fall of the future)

Sell in the spot

Buy in the future

Works when the future is below the spot (backwardation).

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💡 Objective:

To make a profit without direct exposure to the volatility risk of the asset, focusing only on the price difference.

It is widely used by professional, institutional, or arbitrage traders.

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⚠️ Risks involved:

Financing and transaction fees

Insufficient liquidity

Unexpected variation in the spread

Execution and leverage risk

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