At this time, you can short the futures discount, because the futures discount means that the current price of futures is lower than the spot, so the later market treatment is that the spot goes up and the futures go down, and then the two prices tend to be balanced. Accordingly, when futures are bearish, we can make a profit by shorting.

Futures and spot are completely different. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts with certain mass products such as cotton, soybeans and oil and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"