Mostly students in Pakistan ask me one thing:
“Spot trading safe hai ya futures trading zyada profitable?”
Some people show screenshots of big profits in futures, but nobody shows liquidation screenshots.
I am working in forex, crypto, stocks & commodities markets from many years. I explain this topic in simple Pakistani style, no heavy English, only real experience.
What Is Spot Trading? (Simple Pakistani Explanation)
Spot trading means:
- You buy asset
- You own asset
- No leverage
- No liquidation
Example (Crypto Spot):
You buy:
- Bitcoin at $40,000
- Market goes $45,000
You earn profit
Bitcoin stays in your wallet
If price drops?
You don’t lose until you sell
This is why beginners start from spot.
Learn crypto basics here:
What Is Futures Trading?
Futures trading means:
- You trade price movement
- You don’t own asset
- Leverage involved
- Liquidation risk
Example (Crypto Futures):
- Capital: $100
- Leverage: 10x
- Trade size: $1,000
Price moves 10% against you
Your account liquidated
This is high risk, not game.
Spot Trading vs Futures Trading – Core Difference
| Feature | Spot Trading | Futures Trading |
|---|---|---|
| Ownership | Yes | No |
| Leverage | No | Yes |
| Liquidation | No | Yes |
| Risk | Low | Very High |
| Beginner Friendly | Yes | No |
| Stress Level | Low | Extreme |
Leverage & Margin – Reality Check
Leverage
- Spot: Not available
- Futures: Available (2x – 100x)
Margin
Margin is security money.
In futures:
- Low margin + high leverage
- Small move = big loss
SECP-style risk advice
Leverage is tool, not magic. Use without knowledge = account zero.
Bid / Ask Price Impact
Both spot & futures have:
- Bid price (sell)
- Ask price (buy)
Difference = broker exchange fee
This is normal & halal commission, not cheating.
Spot vs Futures – Profit & Loss Example (Real Case)
Spot Example:
- Buy ETH at $2,000
- Goes to $1,700
Loss on paper
ETH still yours
Futures Example:
- Buy ETH at $2,000 with 20x leverage
- Price drops to $1,900
Account liquidated
This is why 90% futures traders lose.
Survey: Pakistani Traders Data (ZMT Academy Community)
| Question | Result |
|---|---|
| Traders using futures | 62% |
| Traders liquidated once | 78% |
| Traders profitable long term | 21% |
| Traders starting from spot | 34% |
| Traders without stop loss | 81% |
Pros & Cons – Spot Trading
Pros of Spot Trading
| Benefit | Explanation |
|---|---|
| No liquidation | Asset stays |
| Beginner friendly | Easy learning |
| Low stress | Peace of mind |
| Long-term holding | Good for Pakistan |
Cons of Spot Trading
| Limitation | Explanation |
|---|---|
| Slow profit | Needs patience |
| Capital needed | No leverage |
| Market crash | Long recovery |
Pros & Cons – Futures Trading
Pros of Futures Trading
| Benefit | Explanation |
|---|---|
| Fast profit | Small move |
| Low capital | High exposure |
| Short selling | Profit in down market |
Cons of Futures Trading
| Risk | Explanation |
|---|---|
| Liquidation | Account wipe |
| Emotional stress | Panic trading |
| Over leverage | Common mistake |
| Gambling mindset | Haram style |
Spot or Futures – Which Is Better for Pakistan?
Beginners:
✔ Spot Trading
✔ Learn market structure
✔ Learn patience
Experienced Traders:
✔ Futures only with strategy
✔ Risk management compulsory
Learn Smart Money Concepts before futures
‘Spot Trading in Stocks vs Crypto vs Forex
| Market | Spot Available | Futures Available |
|---|---|---|
| Pakistan Stocks | Yes | Limited |
| Crypto | Yes | Yes |
| Forex | Mostly Futures | Yes |
Stock beginners guide
Forex strategies
Is Futures Trading Halal or Haram?
Futures trading can become haram if:
- Gambling mindset
- No strategy
- Excessive leverage
Spot trading is more Islamic-friendly because:
- Ownership exists
- No forced liquidation
Binary trading mostly risky:
Spot & Futures Trading Quries
1. Is spot trading safe?
Yes, lowest risk.
2. Is futures trading profitable?
Yes, but most people lose.
3. Which is best for beginners?
Spot trading.
4. Can I do futures with small capital?
Yes, but risky.
5. Why traders get liquidated?
High leverage + no stop loss.
6. Is futures trading gambling?
Without strategy, yes.
7. Should Pakistan traders trade futures?
Only after training.
8. Is Binance futures legal in Pakistan?
Platform accessible, but trader responsible. Check: Is Binance Legal in Pakistan?
9. Can I do both spot and futures?
Yes, but separately.
10. How to avoid losses?
Education + discipline.
Learn Spot & Futures Trading Professionally – ZMT Academy
If you want real skills, not gambling, proper training is must.
Why ZMT Academy?
✔ Pakistan-focused education
✔ Practical live market training
✔ Risk management focus
✔ Crypto, Forex & Stocks
✔ Physical + Online classes
✔ Group & 1-to-1 sessions
Led by Zeshan Malik (CEO & Main Mentor) Helping traders become confident, disciplined & profitable.
Start learning here:
Final Advice (From Experience)
Spot trading builds foundation.
Futures trading tests discipline.
First learn market, then think about leverage.
