#SpotVSFuturesStrategy

Spot trading involves buying or selling an asset at its current market price for immediate delivery. Futures trading uses contracts to set a price and delivery date for a future transaction, allowing investors to speculate or hedge against price changes. Spot trading is ideal for immediate market exposure, while futures trading suits those focusing on longer-term trends without owning the asset directly. A financial advisor can offer additional insights on how these strategies could support your overall investment portfolio.

What Is Spot Trading?

Spot trading refers to the direct purchase or sale of financial assets where the transaction settles "on the spot," or almost immediately, at the current market price.

This type of trading is common across various markets, including stocks, commodities and forex, where assets are exchanged with minimal delay. Unlike transactions involving contracts, spot trading involves the actual transfer of ownership, meaning the buyer receives the asset quickly, typically within one to two business days.