Difference between Spot and Future Trading ?

Spot Trading 

In spot trading, you can’t use the Leverage and it will inverse your profit according to the investment you made only,

For example, if you need to buy a Bitcoin and the value of a bitcoin is 20000usd then you must need 20000 USD in your wallet to buy this  1 bitcoin and if the value of the bitcoin will go high your profit will move high according to but not like in CFD’s because in CFD’s with help of leverage, you was able to trade on a large number but here only the amount you deposit will work.

or example. You buy one Bitcoin for 20k and it moves to 21K so you earn 1K while investing 20k in the meanwhile in Margin or CFDs trading you can buy 1BTC for only 200 if the broker gives you 1:100 leverage only.

Keep in Mind with Leverage there are always pros and cons if the market goes in you’re fever you will earn more and it’s against you can hold the position only to the deposited amount not more than that.

CFDs Trading 

CFDs stand for Contracts for differences, CFDs are also defined as the contact between the investor and the financial institute ( It Means the broker or wallet you are using to trade)

Normally the forex brokers such as IG Market, Exness XM, etc, allow you to trade on Crypto as well with the Help of Leverage, so it means you can trade on Bitcoin even with a lower amount and start your journey as a beginner.

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