Spot Trading vs Future Trading

 
CANVA

There are two kinds of market for traders one with the name spot trading and the other future trading. Both the markets have little price difference but there is huge difference in the features.

In spot market, you can only trade with your real amount and only open long positions. There is no leverage option in this market and also trading fee is higher then that of future market.

But in future market you can use leverage option which will multiply your amount depending upon your learning and experience.

You can trade with $100 taking the advantage amount of $1000 using the 10X leverage. Also there is low fee deduction in future trading.

But one negative thing that future market is kind of risky and can liquidate your amount easily. Also it can give you good profit in short time.

You must be careful when trading in future market because you cant hold for long term. You will get liquidated depending upon the margin you selected.

On the other hand, spot market is safe and is more good for traders or investors holding for long term.

These are some difference between these market and hope newbies will have get the points.

THANK YOU!
 

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