Spot vs. Contract: Two "tactics" that currency players must know!
Spot and contract, which one do you choose? Newbies in the currency circle often can't tell the difference, but the difference directly determines your income and risk!
What is spot?
Simply put, spot trading is like you spend 100 yuan to buy a bottle of Maozi and wait for the price to rise and sell it. Rising to 300 yuan? Congratulations, you have tripled! What if it falls? As long as you don't sell, the loss is only temporary, time is on your side, just wait for the price to rise. This is the charm of spot-steady and steady, don't worry about liquidation.
What is a contract?
Contract trading is not a small fight, it's more like a gamble in a casino with a knife. Maybe a $1 bet will become tens of thousands or even millions a few days later, but if you are unlucky, your principal may evaporate in an instant. Contract play is more exciting, but you need to have steel-like self-control and the ability to withstand extreme market conditions, otherwise you will be ruthlessly harvested by the market if you are not careful.
The choice between the two
Contracts are suitable for players who like high risk and high return and are willing to stay up late to watch the market; while spot is suitable for investors who focus on stable investment and are willing to hold for a long time. Spot allows you to sleep peacefully and wait for the price of the currency to double, while contracts may keep you awake at night and lose so much money that you don’t even have enough money to smoke.
In short, spot is stable and contracts are exciting. It depends on whether you dare to risk your life! Don’t want to be played by the market? Follow Lao Chen and take you every step in the stable currency circle!
