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How does spot currency differ from futures trading?

avatareren akayNov 24, 2021 · 3 years ago1 answers

Can you explain the difference between spot currency trading and futures trading in the context of digital currencies? What are the key characteristics and advantages of each?

How does spot currency differ from futures trading?
Spot Currency
Futures Trading
Digital Currencies

1 answers

  • avatarNov 24, 2021 · 3 years ago
    Spot currency trading and futures trading are two different ways to trade digital currencies. Spot trading allows you to buy or sell digital currencies at the current market price and receive immediate delivery. It's like going to a store and buying something with cash. On the other hand, futures trading involves entering into a contract to buy or sell digital currencies at a predetermined price on a future date. It's like placing a bet on the future price of digital currencies. Spot trading is more suitable for short-term traders and investors who want to use digital currencies for transactions, while futures trading is more suitable for speculators and hedgers who want to take advantage of price movements without actually owning the currencies.

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