Spot and futures refer to two different ways of trading financial assets like forex, commodities, or cryptocurrencies. Spot trading involves buying or selling an asset for immediate delivery at the current market price, making it straightforward and suitable for traders who want direct ownership or quick transactions. Futures trading, on the other hand, involves a contract to buy or sell an asset at a predetermined price on a specific future date, often used for speculation or hedging against price fluctuations. While spot trading reflects real-time market value, futures allow traders to speculate on price movements without owning the asset, often with leverage. Both approaches carry risks and rewards, depending on market conditions and trading goals.
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