What is the difference between futures and spot?
Futures instruments are intended to closely track the movement of the spot price, as the settlement price for futures prices is intended to be the spot price on the expiry date.
The main difference between futures and spot is the fact that for futures, you don't have to commit full collateral upfront to gain exposure to the price of the underlying. Futures are a powerful tool to give traders leverage and flexibility to either short or long any underlying.
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