#SpotVSFuturesStrategy Spot trading and futures trading are among the most important investment methods in financial markets, each with its own advantages and strategies.
Spot trading involves purchasing the actual asset such as stocks or cryptocurrencies at the current price, with immediate settlement. The trader relies on technical and fundamental analysis to predict price movements, and it is characterized by ease of execution, but it is directly affected by market volatility.
On the other hand, futures contracts are agreements to buy or sell a specific asset at a predetermined price on a future date, often used for hedging or to profit from price fluctuations using leverage. However, this leverage amplifies both profits and losses, making the risk higher.
The best choice depends on your goals: if you want direct trading with lower risk, spot trading is suitable, while if you want to benefit from leverage or hedging, futures contracts are your best option.