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Spot trading Vs future trading


randow

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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 by randow
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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.

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