The situation that the forward futures price is higher than the recent futures price and spot price is called futures premium, and the situation that the forward futures price is lower than the recent futures price and spot price is called futures discount.

As the delivery date approaches, the price difference between futures and spot will narrow. This is because if the price difference between futures and spot is large, there will be arbitrage space, investors can make profits through arbitrage, and the arbitrage behavior of arbitrageurs will narrow the arbitrage space, thus narrowing the price difference between futures and spot.