The spot and futures markets are tightly connected, with traders profiting from the price differences through arbitrage or hedging. Futures often trade at a premium or discount to spot prices due to factors like interest rates or storage costs. Arbitrageurs exploit these gaps, buying in one market and selling in the other to lock in risk-free profits, while hedgers use futures to protect against spot price volatility. This dynamic ensures price alignment and liquidity across markets.

#troy #troyarmy #SpotVsFutures