The relationship between spot price and futures price;

1. The futures price is based on the spot price.

Although futures trading is mainly about buying and selling contracts, futures will eventually be delivered in kind, so spot prices will have a decisive impact on futures prices, which is like an expected price of spot prices in the market.

2. The futures price has a great influence on the spot price.

As I said just now, spot price is the basis of the formation of futures price, and futures price is also an important factor in the formation of spot price. Due to the competitiveness, predictability and authenticity of the futures price after listing, the general futures price will be the authoritative price of the commodity in the world, so the futures price will affect the trade activities of commodity producers and operators. Regardless of other factors, the rise of futures prices will also drive the rise of spot prices.

Step 3 hedge

Hedging is the most direct connection between the futures market and the spot market, and the operation of the hedger will reflect the futures price on the relationship between supply and demand of spot goods, so that the final price of both spot and futures is the most "real" commodity value. But at present, the formation of commodity prices is more the final result of the game between speculators in the futures market.