This is a bull market, the futures price is lower than the spot price, and it can be arbitrage in the future.

It is to buy futures for delivery and sell them in the spot market.

Because it is a bull market, the price trend is on the rise, and the spot will not fall into the hands, so the risk is limited and the profit potential is huge.

As for the explanations you have seen, some of them are wrong. Don't worry. Your spirit of seeking truth is true, that is, to get to the bottom of it.

Under the background of bull market, in the delivery month, the futures price is lower than the spot price, and the spread widens. Arbitrage with profitable delivery (spread covering cost) will enter the market, receive the spot price and digest it in the spot market.

This situation is generally the strength of the main short position, but it is done in the wrong direction. It uses the advantage of capital to depress the futures price and force the buyer to claim for liquidation before the last trading day.

Strong institutions with spot digestion channels will enter the market for the purpose of delivery and intervene in the bulls with a persistent attitude.

This kind of bull may encounter bears gradually giving up repression, making the spot price converge before the last trading day, so it will close its position and make a profit.

If the bears fight to the end and enter the delivery link, the bulls will collect the spot and sell it to make up for the loss of futures settlement, and the bulls will still have profits (calculated when selling) in an invincible position.

Therefore, the profit potential is huge and the risk is limited.

This kind of operation needs to prepare sufficient funds and have spot digestion channels.

Or have the ability to hold warehouse receipts.