Spot vs Futures
Explaining the differences between Spot and Futures Trading

What is the difference between Spot and Futures Trading?

  • Spot: Buy/sell crypto for immediate delivery
  • Futures: Buy/sell derivatives that represent the value of an asset

Explainer: Spot Market Trading

In a spot market, commodities, stocks, bonds, or (crypto)currencies are being traded with instant delivery. This implies that assets, for example, $ETH, $SNX, or $KWENTA, 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.
Explainer: 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).
Explainer: Perpetual Futures
Perpetual 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.