#SpotVSFuturesStrategy

The Spot vs. Futures strategy is a trading approach that leverages the price difference between an asset’s spot market (where it's bought or sold for immediate delivery) and its futures market (where delivery occurs at a later date). Traders use this strategy to profit from discrepancies between current and future prices, often through arbitrage. For instance, if a cryptocurrency’s futures price is higher than its spot price, a trader might buy the asset in the spot market and simultaneously sell a futures contract, locking in a risk-free profit (known as a "cash-and-carry" arbitrage). Conversely, in reverse arbitrage, the asset is shorted in the spot market and bought in futures if the spot price is higher. This strategy requires careful execution and a solid understanding of funding rates, margin requirements, and market volatility.