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