In essence, futures is a long-term contract to buy and sell goods with others in order to preserve value or make money.
As mentioned above, financial contracts refer to contracts or agreements for buying and selling futures. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.
Spot refers to a transaction in which buyers and sellers take physical goods immediately or in a short time according to the agreed payment method and delivery method for the demand of physical goods and the purpose of selling physical goods. In spot trading, with the transfer of commodity ownership, the exchange and circulation of commodity entities are completed at the same time. Therefore, spot trading is the direct embodiment of commodity operation.
Spot trading is a transaction between big banks, and it is also a transaction between big banks acting as agents for big customers. After the transaction is concluded, the payment and delivery of funds shall be completed within two working days at the latest.