What is the difference and connection between futures and spot?
The difference between futures and spot is mainly the delivery time. Spot is the transfer of commodity ownership immediately after the transaction; Futures is a standardized sales contract, which stipulates that goods will be delivered within a specific time. In the actual investment, you can also choose not to deliver, but to close the position through reverse trading to obtain the bid-ask spread income.
The connection between futures and spot is that spot price is the basis of futures price. Although futures trading is mainly based on contract trading, it is always based on delivery. Therefore, the spot price of commodities determines the futures price of commodities. At the same time, futures prices also have a certain impact on spot prices, and futures prices have the function of discovering forward spot prices.