#SpotVSFuturesStrategy A common strategy related to the spot market and futures contracts is the cash-and-carry arbitrage. This involves buying an asset in the spot market while simultaneously selling a futures contract on the same asset. The goal is to lock in a risk-free profit when the futures price is higher than the spot price plus carrying costs (such as storage or interest). Upon expiration, the asset is delivered according to the futures contract, closing both positions. This strategy profits from the price convergence between the spot and futures markets. Conversely, if the futures are trading below the spot price, the reverse cash-and-carry arbitrage can be employed (selling spot, buying futures). These strategies rely on market efficiency and require low capital, low transaction fees, and minimal slippage to be profitable.