#SpotVSFuturesStrategy #SpotVSFuturesStrategy 💹 Spot VS Futures Strategy 💹
Spot Trading:
1. You buy the asset directly and actually own it
2. There is no leverage or it is very limited, which reduces potential loss
3. Less risky compared to futures, as you do not lose more than you invested
4. Profit is slower but more stable
5. No risk of forced liquidation
🔹Futures:
1. You do not own the asset, but bet on the price rising or falling in the future
2. You use leverage (sometimes 10x, 50x, or even 100x) which exposes you to quick losses
3. Very risky, and you could lose all your capital within minutes
4. Potential profit is fast and high, but fraught with risk
5. Possibility of forced liquidation when the market moves against you, even without losing all your capital
From a religious perspective:
🔹Spot Trading:
1. Generally permissible according to most scholars, provided that immediate settlement is achieved
2. Does not involve interest