#SpotVSFuturesStrategy In financial markets, spot trading and futures trading are two distinct approaches to buying and selling assets. Spot trading involves the immediate buying and selling of an asset at the current market price, with almost instant delivery. On the other hand, futures trading involves contracts that establish the buying or selling of an asset at a predetermined price on a future date.

The relationship between the spot price and the futures price of an asset is known as spot-future parity. In efficient markets, the futures price should reflect the current spot price plus the cost of holding the asset until the futures expiration date, including interest and storage. If this parity is not maintained, there is the possibility of arbitrage, where investors can make risk-free profits by simultaneously buying and selling in the spot and futures markets.