Cryptohero

Log In
Sign Up

Spot and Futures Markets

Spot Market

If your bot isn’t buying or selling in the spot market, it could be due to market conditions not triggering your entry/exit strategies (e.g., RSI hasn’t hit your buy threshold). It might also be waiting for a new trading signal or dealing with insufficient balance on your exchange.

Futures Market

For futures, inactivity could be due to margin requirements, risk management settings, or protective mechanisms like stop losses not being triggered.

Key Differences Between Spot and Futures Markets

Spot Market

  • Immediate settlement
  • Own the actual asset
  • Lower risk, simpler strategies

Futures Market

  • Future settlement
  • Contract-based, not ownership
  • Higher risk, complex strategies with leverage

Risks in Trading the Futures Market

High Leverage = High Risk

While leverage amplifies gains, it also magnifies losses. A small market movement in the wrong direction can wipe out your funds.

Margin Calls & Liquidation

If your balance falls below the required margin, your position may be forcefully liquidated, leading to total loss of funds.

Market Volatility

Crypto markets are highly volatile, and sudden price swings can trigger unexpected losses.

Emotional Trading

The fast-paced nature of futures trading can lead to panic decisions, increasing risks further.