In the spot market, if the spot price is lower than the futures price, we call it spot discount. In other words, the spot price is less than the futures price, which is called spot discount. Usually, the spot discount will occur when the market supply exceeds demand, because the supply exceeds demand, so the price will fall.

Spot discount will have an impact on the market. If a large number of spot discounts appear, on the one hand, investors who pay attention to spot discounts may buy a lot of spot to get cheaper prices, on the other hand, futures investors may reduce their positions. Because of the low spot price, investors may get less profit by selling futures contracts before the delivery date. Therefore, the existence of discount will inhibit the activity of futures market.

The market of spot discount will restrict the behavior of market participants, and the mechanism of spot discount can guide market participants to produce corresponding behaviors, because the formation of spot discount will provide opportunities for short sellers to short the spot, thus restricting the enthusiasm of the market, which is also one of the important market mechanisms of spot discount.