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What is spot and what is futures?
What is spot and what is futures?

Inventory, also known as physical objects, refers to physical objects that can be shipped, stored and manufactured. The spot available for delivery can be converted into cash in short-term or long-term, or the payment can be made in advance, and the buyer pays in a very short time. Symmetry of futures.

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 delivery date of futures can be one week later, one month later, three months later or even one year later.

A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.