Spot vs futures

Owning the coin vs holding a contract

Members

In this lesson

Understand the difference between owning an asset and holding a futures contract, and what that means for risk.

Key takeaways

Spot: you own the asset outright; there is no liquidation.
Futures: a contract that tracks the price; you can go long or short and use leverage.
Perpetual futures never expire and use funding payments to stay near the spot price.
Leverage magnifies losses and can liquidate your whole margin.

Watch this lesson with Tessa. The full video, worked example, calculator, quiz and Ask Tessa are part of Money Globe X Silver, Gold and Platinum. Create your account to start learning.

Next lesson: Long and short

Educational information only - not financial advice.

Create your free account

Free lessons, live markets and the Classroom. Founding members get their first year at a founding price - applied automatically at checkout.

Offer terms