potVSFuturesStrategy **Spot vs Futures Strategy** involves trading in the spot market and the futures market simultaneously to take advantage of the price differences between the two markets. Here’s an overview of each component and how the strategy works:

## Spot Market

- **Definition**: The spot market is where financial instruments, such as commodities or currencies, are traded for immediate delivery.

- **Characteristics**: Prices are determined based on current market conditions, and transactions are settled "immediately".

## Futures Market

- **Definition**: The futures market allows traders to buy or sell an asset at a specified price on a certain date in the future.

- **Characteristics**: Prices are influenced by future supply and demand expectations, and contracts are standardized.

## Overview of the Strategy

1. **Objective**: To profit from the price differences between the spot market and the futures market.

2. **Execution**:

- **Buy in the Spot Market and Sell in Futures**: Buy the asset in the spot market and sell a futures contract if you expect the spot price to rise.

- **Sell in the Spot Market and Buy in Futures**: Sell the asset in the spot market and buy a futures contract if you expect the spot price to fall.

3. **Arbitrage Opportunity**: If the price in the spot market deviates significantly from the futures price, traders can exploit these differences for profit.

## Considerations

- **Transaction Costs**: Fees associated with trading should be taken into account.