#SpotVSFuturesStrategy Spot vs futures strategy involves exploiting price differences between spot and futures markets. Here's a comparison:
- *Spot Market*: Buying or selling assets for immediate delivery at current market prices.
- *Futures Market*: Trading contracts that obligate buying or selling assets at a predetermined price on a specific future date.
- *Strategy*: Traders can use various strategies, such as:
- *Cash-and-Carry Arbitrage*: Buying an asset in the spot market and selling a futures contract to profit from price differences.
- *Speculation*: Taking positions in futures contracts based on expected price movements.
- *Hedging*: Using futures contracts to mitigate potential losses in spot market positions [1][4].