#SpotVSFuturesStrategy

Spot vs Futures strategy involves trading in the spot market (where assets are bought/sold for immediate delivery) and futures market (contracts to buy/sell at a future date). Traders exploit price differences between the two. For example, if futures are priced higher than the spot (contango), one can buy spot and sell futures to lock in profits—called cash-and-carry arbitrage. In backwardation (futures < spot), reverse arbitrage is applied. This strategy is low-risk and often used by institutional traders to earn risk-free returns. Success depends on transaction costs, margin requirements, and market efficiency. It's a classic example of arbitrage trading.