Spot vs Futures Bots – Explanation & Risks
What Are Trading Bots?
Sparx bots automate trades based on pre-set strategies. These run on either the spot or futures markets.
Spot Trading
You purchase actual crypto assets (e.g. BTC, ETH). No leverage. No liquidation risk.
Futures Trading
You trade contracts, not coins. Leverage is used. Profits are possible in both rising and falling markets — but there's liquidation risk.
Key Differences
| Feature | Spot Bot | Futures Bot |
|---|---|---|
| Ownership | Yes | No |
| Leverage | No | Yes (predefined) |
| Liquidation Risk | None | Yes |
| Suitable For | Beginners / Long-term | Advanced / High-volatility |
⚠️ WARNING: Futures bots are high-risk. Never invest more than you can afford to lose. Using futures bots might result in losing everything.