#SpotVSFuturesStrategy A **spot vs futures strategy** involves taking opposite positions in the spot and futures markets to exploit price differences or hedge risk. In a **spot position**, assets are bought or sold for immediate delivery, while **futures contracts** lock in prices for a future date. Traders use this strategy for **arbitrage**, **hedging**, or **speculation**. For example, buying in the spot market and selling a futures contract can hedge against price drops. Conversely, if futures prices are higher than spot (contango), arbitrageurs may short futures and go long on the spot. This strategy requires market timing, capital, and awareness of contract expiry.