Spot versus futures

A financial instrument is a contract or a document that represents a legal agreement involving monetary value. It can include assets, such as stocks and bonds, or contractual rights to receive or deliver cash, such as bank deposits, loans, and derivatives.

A spot market is a market where the financial instrument being traded is immediately delivered.

A futures market is a market where the financial instrument is being delivered at a later date. You buy (and sell) derivative contracts that represent the value of the asset.

Futures trading is typically the choice for traders, thanks to its unique advantage of enabling profits from any market direction. On the other hand, spot trading is a popular choice among investors due to its simplicity. It enables them to easily buy and hold tokens.

Here is a table with the main differences between spot and futures trading:

Spot	Futures ...