Spot and futures have always been products that investors need to distinguish, and the investment risks of different investment products are also different. It is very necessary for investors to choose investment products with low price risk. Especially in the spot market, commodity prices fluctuate frequently, and investors need the ability to transfer price risks.

What is the relationship between spot and futures?

Spot and futures prices are mostly the same. In most cases, futures and spot prices rise and fall together. With the formation of futures market, futures price is an important factor affecting the formation of spot price. In general, futures are spot forward prices, that is, a price expectation, and futures prices are a higher-level price format.

Spot reflects the current supply and demand price, while futures reflect the future price. Unless other conditions remain unchanged, positive changes in futures prices will raise spot prices and increase the supply of spot goods to some extent. However, futures contracts may be speculated in the futures market. The different investor structures in the futures market and the spot market will lead to different futures and spot prices.

However, investors need to understand that the trends of spot and futures are not exactly the same. Among them, the futures price of the recent contract is synchronized with the spot price, while the spot corresponding to the forward futures may rise or fall. Moreover, the general trend of spot gold and international futures gold is similar, but domestic futures gold and international gold are very different.