Please illustrate spot arbitrage with examples.
Futures is a hedging transaction, which is actually the sale of contracts rather than commodities. A very simple example is whether buying futures is bullish or bearish. If the operation direction is correct, it means that you have signed the quantity of an item to be delivered on a certain day at a certain price. If you are bearish, then sign how many goods you buy at the current price. You can buy them at a low price from the spot market and sell them at a high price on the delivery day. If it is bullish, then you buy the futures of an item at the current price at a very low price on the same day.