The #SpotVSFuturesStrategy involves choosing between spot trading—buying and selling assets for immediate delivery—and futures contracts, which entail agreements to trade assets at a predetermined price and date. Spot markets are straightforward: you own the asset outright and benefit from its immediate price movements. Futures offer leverage, enabling larger exposure with a smaller upfront margin, but carry heightened risk due to obligations to settle, potential margin calls, and time decay. Traders embracing futures can hedge positions and speculate on both upward and downward trends with precision. However, if markets move unfavorably, leverage can amplify losses. Ultimately, combining both strategies allows diversified risk management and tailored returns.
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