What are the differences between spot trading and futures trading in the digital currency space?

1 answers

• Dec 28, 2021 · 3 years ago
  Spot trading and futures trading are two different ways to trade digital currencies. Spot trading involves buying or selling digital currencies for immediate delivery, while futures trading involves buying or selling digital currencies at a predetermined price for delivery at a later date. Spot trading is more suitable for short-term traders who want to take advantage of immediate price movements, while futures trading is popular among traders who want to hedge their positions or speculate on future price movements. It's important to note that futures trading carries additional risks, such as the possibility of margin calls and the need to monitor and manage positions over time. Traders should carefully consider their trading goals and risk tolerance before deciding which approach to take.
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