Spot trading Vs future trading

[randow]

I am pretty new to ig, would anyone able to tell me how would a trader choose to trade between spot and future, what are the pros and cons? If my trading time duration takes around a week, should I opt for spot instead of future? Which one usually cost more? Is that true the main difference is all about the cost as I suppose both is settled by cash and spot does not expire while future does?

Edited May 28, 2020 by randow

[Caseynotes]

12 hours ago, randow said:

I am pretty new to ig, would anyone able to tell me how would a trader choose to trade between spot and future, what are the pros and cons? If my trading time duration takes around a week, should I opt for spot instead of future? Which one usually cost more? Is that true the main difference is all about the cost as I suppose both is settled by cash and spot does not expire while future does?

hi, spot trading is for shorter periods of up to around a week while futures are for the longer term. On spot trades you pay an interest charge nightly while on futures you just pay the higher spread instead.