Spot vs Futures
Explaining the differences between Spot and Futures Trading
What is the difference between Spot and Futures Trading?
Spot Market Trading
In a spot market, assets are being traded with instant delivery. This implies that those assets, for example, ETH, BNKD, or XBNK, are exchanged directly between market participants. Buyers and sellers have direct ownership of the underlying assets and will be able to utilize them in whatever way they want.
Futures Market Trading
In a traditional Futures market, the delivery of underlying assets and Futures contracts are settled on a predetermined future date, instead of directly trading assets (as in a spot market).
Perpetual Futures Trading
Perpetual Futures contracts allow traders to speculate on the future price of a given asset by buying (going long) or selling (going short) perpetual futures contracts. Unlike typical futures, perpetual Futures do not expire and remain effective until the trader closes their position.
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