#SpotVSFuturesStrategy Spot and futures trading are two distinct strategies in the financial markets. A spot trading strategy involves buying or selling an asset for immediate delivery at the current market price. It’s straightforward, ideal for long-term investors, and carries no expiry risk. On the other hand, a futures strategy involves a contract to buy or sell an asset at a predetermined price on a future date. This is popular for hedging or speculation, especially in volatile markets.

A combined spot vs futures strategy can exploit price discrepancies between the two markets. For example, traders may use cash-and-carry arbitrage, buying in the spot market and selling futures to profit from premium differences. Conversely, reverse arbitrage works when futures trade at a discount.