#SpotVSFuturesStrategy A Spot vs. Futures strategy leverages the difference between an asset's current price (spot) and its price for future delivery (futures). Traders can use this for arbitrage, profiting from temporary price discrepancies by simultaneously buying the cheaper and selling the more expensive instrument.

Alternatively, it's crucial for hedging, where a market participant with a physical (spot) position can use futures to lock in a price and mitigate risk from adverse price movements. For instance, an exporter expecting future foreign currency receipts might sell futures contracts to protect against currency depreciation.