#SpotVSFuturesStrategy

1. 📊 Hedging Strategy

Objective: Protect your profits or assets from market losses

Example:

You have 1 BTC in your Spot account

You open a Short position on BTC in your Futures account

If the price drops, you lose in Spot but gain in Futures

2. 🔄 Funding Rate Arbitrage

Objective: Take advantage of the difference between the two markets

Example:

The funding rate in the futures market is positive

You buy BTC in the spot market and open a Short position in the futures market

You earn the funding fee every 8 hours

3. 💎 Spot Accumulation with Futures Scalping

Objective: Build a long-term position in the spot market while achieving daily profits from contracts

Example:

You buy ETH in Spot and hold it

You trade on ETH's movements in futures on the hourly or 15-minute timeframe to achieve short-term profits

4. 🔐 Stop Loss Insurance Strategy

If you are unable to set a stop loss in Spot, you can open an opposite position (Short) in Futures to reduce temporary risks instead of selling at a loss

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📌 Notes for Beginners

Start without leverage in futures until you master risk management

Monitor the Funding Rate as it can sometimes be negative

Do not open the same direction in both markets as this may double your losses