Spot vs Margin vs Futures — What’s the Difference?

Spot Market
You buy or sell an asset at its current market price and, generally, take ownership of the asset. Simple and straightforward.
Margin Trading
You trade using borrowed funds (leverage), which can increase both potential gains and potential losses. Risk management is especially important.
Futures Market
You trade contracts whose value is linked to an underlying asset. Futures can be used for speculation or hedging, and they often involve leverage.
Quick takeaway:
Spot = Buy/sell the asset
Margin = Trade with borrowed funds
Futures = Trade a contract based on an asset
Leverage can amplify losses as well as gains. Always understand the risks before trading.
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