Spot vs futures: which is safer for a trading bot?
Spot means you buy the actual coin. Futures means you hold a contract on its price, usually with borrowed money. That one difference changes everything about risk.
Side by side
| Spot | Futures | |
|---|---|---|
| What you hold | The coin itself | A contract on the price |
| Leverage | None | Common, often high |
| Liquidation | Not possible | Yes, your position can be closed by force |
| Cost of waiting | None | Funding fees while you hold |
| Profit when prices fall | No | Yes, by going short |
| Worst case | The coin loses value | You lose the whole position quickly |
Why leverage changes the game
With leverage, a small move against you becomes a large loss. At ten times leverage, a fall of about ten percent can wipe out the position. The exchange closes it for you, and the loss is permanent even if the price recovers an hour later.
On spot, the same dip is only a paper loss. You still own the coin and can wait.
Why Treo is spot only
Treo is built on waiting: it never sells at a loss on its own and holds until a position is green. That only works when nothing can force you out. Spot allows it. Futures does not.
We tested a futures engine early on and switched it off. The risk did not fit the product.
When futures make sense
Futures are a real tool for experienced traders who want to hedge or to profit from falling prices, and who size positions carefully. If that is not you yet, spot is the place to start.
Questions
Can I lose money on spot?
Yes. The coin can fall and stay down, and you can sell at a loss yourself. What cannot happen is a forced liquidation.
Does Treo use margin?
No. Treo places spot orders with the balance you have. It does not borrow.
Why does the Binance API permission say Spot and Margin Trading?
Binance groups them in one switch. Treo uses the spot part only.
Put your trading on autopilot
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