#الدرس Fifth: The difference between #التداول #الفوري and contracts (Spot vs Futures)*

In the world of trading, there are two basic types you need to know:

1. *Spot Trading:*

This is the simplest type, you buy the currency and put it in your wallet, and you wait for the price to rise so you can sell and profit. You cannot open a sell order, you can only buy and wait for the rise. There is no leverage, meaning if you have 50 dollars, you trade with 50 only. Your loss is limited to your capital.

2. *Futures Trading: #محرم

Here you do not actually buy the currency, you only trade on the price movement. You can open a buy order (if you expect the price to go up), or a sell order (if you expect the price to go down). You can use leverage, meaning with a small capital you can trade a large amount, but if you lose, you can quickly lose all your balance.

The advantage here is that you can profit whether the market is going up or down, but the risk is much greater than spot trading.

*Summary:*

If you are a beginner, start with Spot.

If you gain experience and understand risk management, then try futures.

Like and share so we can continue tomorrow in lesson six about types of orders and how to enter a trade professionally.