#SpotVSFuturesStrategy The
involves analyzing the price relationship between spot and futures markets to exploit arbitrage or hedging opportunities. In the spot market, assets are bought or sold for immediate delivery, while futures contracts lock in prices for future dates. Traders use this strategy to profit from price discrepancies, manage risk, or gain exposure without holding the underlying asset. For example, if futures trade at a premium to spot, one might short the future and buy the spot. This strategy requires careful timing, margin management, and understanding of market mechanics. It's popular among institutional traders and arbitrageurs in volatile markets.
