A must-read for beginners, what is the difference between spot and contract, understand these and then play the contract and you will understand why the currency circle is wailing! !
Spot
It means buying and selling actual assets, and the transaction price is the real-time market price, with low risk and long-term holding.
For example: it's like you buy apples in the fruit market. You pay, get the apples immediately and take them home, and you can decide when to eat or save them.
Contract
It is a buying and selling contract, usually with leverage, allowing smaller funds to control larger positions, with higher risks, and expiration dates or forced liquidation clauses.
For example: it's like you sign a future apple purchase agreement with a farmer. You prepay part of the money and agree to buy apples at a certain price during the autumn harvest season. At that time, no matter whether the market price of apples rises or falls, you have to buy these apples at the agreed price. If the market price is high, you make money; if the market price is low, you lose money. This agreement also allows you to control more apples with a small amount of money, but the risk is also higher.
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