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Spot trading
Spot trading is buying or selling an asset for immediate delivery at the current price, so the buyer gets the asset itself rather than a contract tied to its price. On a crypto exchange, a spot trade swaps one currency for another, such as dollars for a coin, without borrowing.
What it means for you. Bought on the spot market with your own money, the most you can lose is what you paid: there is no margin call and no forced liquidation. If the coin stays on the exchange, the exchange holds it for you; withdrawing it to your own wallet is a separate step that can carry a fee.
Sources: CFTC Glossary, Investor.gov: Stock Purchases and Sales: Long and Short · checked 4 October 2026
Futures contract
A futures contract is an agreement to buy or sell an asset on a set future date at a price fixed today. Both sides are obligated, and most traders close the contract before that date rather than deliver, so it is mainly used to bet on or hedge against price moves.
What it means for you. Futures are traded on margin, so a small deposit controls a much larger position, and gains and losses are settled to your account every day. A move against you can bring a margin call or a forced close well before expiry. Some futures settle in cash rather than the asset, so you never receive the coin.
Source: CFTC Glossary · checked 4 October 2026