The difference between spot and futures trading lies in how the trades are executed and the settlement terms:

1. Spot Trading:

Assets are bought and sold immediately, meaning you own the currency or asset immediately after the trade is executed.

Settlement takes place at the same moment or within a short period (usually the same day).

There is no specific time in the future in the trade.

2. Futures Trading:

An agreement is made to buy or sell assets at a future time at a predetermined price.

The asset is not actually exchanged at the moment, but rather settled at a future date.

Allows hedging against price fluctuations or speculation on future prices.

In short: in spot trading, you buy and sell assets immediately, while in futures, you agree to buy or sell assets in the future based on a price determined now.