How tough is futures in comparison to spot trading

[mirakal]

This simply explains...

[i]"Spot markets offer immediate settlement, while futures markets have predetermined settlement and delivery dates. Spot prices are determined by real-time supply and demand, while futures prices reflect various factors, including the current spot price and time remaining until contract expiration."[/i]

credit to the source: https://www.morpher.com/blog/spot-vs-futures

Both inherent risks due to market volatility but many traders choose spot trading because they are more familiar with it than futures trading. Of course, we choose where we think that has a good trading feature and time span. Even for me, it is quite easy to make TA based on the real-time price actions that spot trading could take.

Spot trading is very suitable for beginners but of course, trying futures trading is not forbidden at least we can assess and answer the question in our mind about which one is better as we all have individual preferences.

[Webetcoins]

I don't do both but I always heard that futures trading is harder than in spot trading. I think that is enough explanation for one to not venture futures, if he is doubting about his ability. That's great if you have an enthusiasm to learn futures trading but to dive on it full time after it, seems a crazy idea to do even for a pro spot trader. I think they are only doing it like a side hustle.

Demo trading is easy, I mean we feel confident about it because we know that we can't lose anything but things starts to change once we step in the real arena. Other than that, market is also fluctuating, so results can't be maintained most of the times. The last contributing factor is like you said, the exchange is offering an event, so they might be tweaking your results there just like a beginner in the casinos.

[Maus0728]

With futures, the likelihood of losing is higher and the money you'll risk in your bet in the futures is so expensive and would be gone forever unlike with spot trading where you can just go with hodling if you made a bad trade and you can then wait it out so you can sell it for profit. There's a reason why futures got a separate tab on centralized exchanges, it's just that different when compared to spot trading, think of it this way if you can't wrap your mind around it, spot trading is like playing games casually, it's chill and losing is alright most of the time but futures trading is like gaming competitively that your only aim is reaching the top and no other place besides it would suffice, you're playing to be the best basically.

[Cookdata]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Future trading is similarly to spot trade but it's more complicated with the leverage. You can open a leverage trading of 1x and have similar loss and profits (pnl) like that of spot but you could get liquidated(lose everything) than doing spot trading and this what makes the difference between the two. Future trading gives you upper hand to borrow extra money like margin trading but you are not buying coin but contracts which you can either go long or short. It's just a prediction about the market, more like gambling

If you don't understand spot trading professionally, don't even try to go into future trading because you will lose everything right before your eyes due because leverage gives you more money for contracts and the more the leverage you increase, the quicker your liquidation. If you have been using the demo, try the calculator to see your liquidation and profits/loss with entry and find out more about future trading.

[tygeade]

Both inherent risks due to market volatility but many traders choose spot trading because they are more familiar with it than futures trading. Of course, we choose where we think that has a good trading feature and time span. Even for me, it is quite easy to make TA based on the real-time price actions that spot trading could take.

Spot trading is very suitable for beginners but of course, trying futures trading is not forbidden at least we can assess and answer the question in our mind about which one is better as we all have individual preferences.

I feel like many prefer spot because there isn't a chance to lose 100% there. I mean there is a "chance" if the coin you buy at spot suddenly vanishes, like exit scam or rug pull. However, aside from that, if you buy something like bitcoin for example, then you are not going to lose 100% of your money there.

Whereas, with futures, you are going to lose 100% if you are wrong, and that is why they do not prefer it, don't get me wrong you could also make a lot more money than you could with spot, there is nothing wrong with that, I would say it is a smart decision if you are sure, but it is also a bad idea if you are not entirely sure. I believe that we are going to do fine, we just need to do better about it by being more patient.

[Dr.Bitcoin_Strange]

Most of the time, CEX puts out those promotions to tempt people into jumping into trade even when they are not yet ready, while they (the CEX) are more advantaged by those promotion events. I don't mean to discourage you from trading; perhaps you said you have already been practicing with a demo account, and I believe nothing is strange for you again, but don't jump into feature trading because of the event the exchange has hosted for first-time feature traders. Make sure you start trading when you are fully ready and prepared. If you think you are ready, good luck. Feature trading is profitable, but losses can be incurred too. 

[_BlackStar]

By the way - future trading has made me lose at least $1K on the second trading attempt. Basically I've learned from previous mistake - but sometime market tend to be very difficult to predict especially when panic can really increase selling pressure. I'm certainly not going to say that future trading is always bad - but trader should be extra careful and avoid wanting to make huge profit.

I agree that spot trading tends to be recommended for beginners trader - it's a little safer from the overall risk of losing money. At least the spot trader still has his assets when the price down - while the futures trader loses all his money when the price reaches the margin.

[nelson4lov]

~Snipped

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

I'm not sure the term hard best describe it considering futures is basically spot with elevated risks and rewards. Leverages can either be a good thing or a bad one based on how you apply them and how the market moves when you have opened a position. If in your favour, you stand to gain more and vice versa. In recent times, I haven't had much luck because the bears took over abd have kept the prices of altcoins as low as possible. Your experience will obviously differ from mine so my only advice is that you don't go haywire with the new found possibilities that futures and leverages afford you.

[Z_MBFM]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

In spot trading you can buy a coin and hold it until you can make a profit.  But in case of futures trading you will be at risk as per your leverage rate and if you take wrong entry your balance will be zero and trade will be stopped immediately.  Futures trading is like gambling so it is best not to go here if you cannot afford to lose. Futures trading and gambling are almost equally risky so not everyone has the ability to manage it.  I would advise you not to do futures trading unless you have a large financial backup

[gunhell16]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

There is a big difference between spot and futures; that's what you should always remember. So don't get too carried away with demo trading because the actual trade in futures is very different compared to the demo. Demo trading will make you feel like you can handle live futures trading.

But when you are in actual futures trading, you will see and feel what others are saying here. Do you know the basics of futures trading? Do you really know how to perform technical analysis and fundamental aspects? Do you know what tools you will use in futures trading? Maybe later on, the only thing you'll do is make it seem like you already know the strategy, but the truth is, you don't really, because if that's what you do, you can be really rekt instantly, dude. There is a lot of concern in the Cross, SL, and even in the analysis or reading of the chart. There can't be any emotions to use there; the question is, are you sure you can properly control your emotions in trading? If you are not sure, I advise you to practice spot trading first rather put yourself in a hurry in futures trade.

[Issa56]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

If you are a newbie, don’t dive into future trading. Trying demo trading doesn’t mean you already understand everything about trading, and you should just start making use of a real account. You might be making use of a demo account and be making profits, but if you switch to a real account, things might not really be going well again. So I will just recommend you start with spot trading or focus on spot trading because there is less risk involved in it compared to future trading. If you are going into future trading, then you have to be very careful, trade with just a small amount, and make sure you use low leverage whenever you are trading.

[Hamphser]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

There is a big difference between spot and futures; that's what you should always remember. So don't get too carried away with demo trading because the actual trade in futures is very different compared to the demo. Demo trading will make you feel like you can handle live futures trading.

But when you are in actual futures trading, you will see and feel what others are saying here. Do you know the basics of futures trading? Do you really know how to perform technical analysis and fundamental aspects? Do you know what tools you will use in futures trading? Maybe later on, the only thing you'll do is make it seem like you already know the strategy, but the truth is, you don't really, because if that's what you do, you can be really rekt instantly, dude. There is a lot of concern in the Cross, SL, and even in the analysis or reading of the chart. There can't be any emotions to use there; the question is, are you sure you can properly control your emotions in trading? If you are not sure, I advise you to practice spot trading first rather put yourself in a hurry in futures trade.

For those noobs who have been able to experience some positive results into their demo trading then they would really be that starting to have those kind of thinking that they could really be easily be doing it
on the moment that they would really be touching up on doing some sport trades and the worst they would really be touching up futures trading just because they've been believing that they could really be able to make profits on the moment that they would really be making those trades on which this is really just that a very wrong approach to have if you do have this kind of behavior on dealing up with
delusional approach about trading. You would really be able to realize things on the moment that those expectations would really be trashed out just because trading isnt something that too simple
and demo are really just that good for familiarizing things.

[Gaza13]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

In spot trading you can buy a coin and hold it until you can make a profit.  But in case of futures trading you will be at risk as per your leverage rate and if you take wrong entry your balance will be zero and trade will be stopped immediately.  Futures trading is like gambling so it is best not to go here if you cannot afford to lose. Futures trading and gambling are almost equally risky so not everyone has the ability to manage it.  I would advise you not to do futures trading unless you have a large financial backup

Therefore it is important for us to learn as a whole, not just indicators, in futures trading we have to set Stop Loss to minimize large losses in this case, and if we want to make a profit then we also have to determine what percentage we want from the money we bet. If you don't use this package, you can be sure your money will quickly disappear there.

[mirakal]

Both inherent risks due to market volatility but many traders choose spot trading because they are more familiar with it than futures trading. Of course, we choose where we think that has a good trading feature and time span. Even for me, it is quite easy to make TA based on the real-time price actions that spot trading could take.

Spot trading is very suitable for beginners but of course, trying futures trading is not forbidden at least we can assess and answer the question in our mind about which one is better as we all have individual preferences.

I feel like many prefer spot because there isn't a chance to lose 100% there. I mean there is a "chance" if the coin you buy at spot suddenly vanishes, like exit scam or rug pull. However, aside from that, if you buy something like bitcoin for example, then you are not going to lose 100% of your money there.

Whereas, with futures, you are going to lose 100% if you are wrong, and that is why they do not prefer it, don't get me wrong you could also make a lot more money than you could with spot, there is nothing wrong with that, I would say it is a smart decision if you are sure, but it is also a bad idea if you are not entirely sure. I believe that we are going to do fine, we just need to do better about it by being more patient.

We can find chances in both but yeah, that also matters on the qualifications we have or we are really strong enough to take risks and lose money 100% in a single trade. More people prefer spot trading not because it is less risky but it is because they think that their level is just for spot trading. It is to believe that living in our comfort zone is a good idea but some traders also want to try futures trading which is not a bad choice either. But what is to find out is that what we can do in spot trading can't be possible in futures trading. I mean, if we think we are good in spot trading, it may not be the same in futures trading. In this risky matter, I think it is better to stay in our comfort zone where we already feel safe and still in profit.

[kingvirtus09]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

To understand risk of Futures trading or Leverage trading, you simply need to read exchange's guide and their formula on liquidation. After reading their collateral and liquidation formulas, you will know more about risk, not only in words but in math.

Understand formulas and risk will help you to be less greedy with leverage, futures and become more careful with your capital so that you will less likely use leverage or futures for your trading.

Forced selling (or forced liquidation): Definition and examples

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

I don't trade Leverage and Futures.

It's only right that you don't trade leverage in futures trading if you know that you will hesitate to do it, because futures trading is not a joke and your funds can disappear in an instant if the setup you do here is wrong. Then one more thing is really needed here: you have a deep understanding, at least when reading the chart on the graph.

At least if you just stay in the spot, you won't immediately feel that you will lose as long as what is in the current price market is the only one you can buy or want to sell just like that.

[boyptc]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

It's hard if you're starting out compared to spot. But you'll need to say that when you experience it already.

I've got a tip for you. Whatever you experience with demo trading, don't think of it as it's going to be the same during your actual futures trading.

They're both completely different and the confidence you're getting there might be broken eventually but still good luck.

[Frankolala]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Don't think that because you are doing fine in demo trading means that you have experience of the market because it is different from real trading. When money is involved it becomes more difficult and you will get confused of the market but if you use little amount of money to trade that will help you have good experience of the market and it will not affect your emotions.

Future trading is a no go area for me and very risky for any trader because you cannot predict the next move of the market. This is why spot trade is better and has less risk compared to future trading. Only use the amount of money that you can afford to lose when trading.

[bitvestorhacked]

Futures Trading :High risk, spot trading Low risk

This is a clear difference, you want quick money, take the risk(Futures Trading), you want to relax and chill while watching to coin go up and down, then spot trading, but another way to feel futures trading without actually futures trading is by holding shit coins  .

[Phoenixtrader]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

First off I'll suggest you work on your risk management then take the bold step to do live trading.. I wish you luck. Btw what exchange is that and what's the event about. You can share more details or probably a link to it..

Great advise here mate. I started with risk management though..it's a painful but slow process and it works wonders long term. Did a quick search about top futures trading event & this popped out. Might be the one OP is referring to..Trading event

The market seems like it's going in one direction at the moment. So I think meeting the requirements here won't be difficult. Just short it ahaha. Unfortunately it's for those in the uk, Canada, France and some other parts. I'm in Africa so I'm not eligible. Thanks though.

[justdimin]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Not as tough as people think it is, because futures doesn't mean high leverage all the time, you could have low leverage as well, hell you could just bet on a certain date basically. The problem is the leverages, if you do like x150 then you are not going to end up with any profit most likely and even if you do once, if you keep doing it eventually you will be wrong and you will lose it all.

I would say that spot trading is easier, you get to make 1-3% profit per day easily if you know what you are doing, do that over course of one year, and you are going to have an insane return. I know you can't make 1-3% daily return of course, but you could make on average 50%+ profit per year. Do that for 20 years and you are wealthy beyond your dreams.