#SpotVSFuturesStrategy
A **spot contract** involves buying or selling an asset for immediate delivery at the current market price, known as the **spot price**. In contrast, a **futures contract** is an agreement to buy or sell an asset at a predetermined price on a specific future date. Spot trades settle quickly, usually within two days, and the asset changes hands immediately. Futures are used for **hedging or speculation**, and the actual exchange happens later. Futures prices often include costs like storage or interest. While spot markets are straightforward, futures involve more complexity and risk due to leverage, margin requirements, and time exposure.