Did you know that in trading futures contracts, the perpetrator can also open a selling contract first and if the trading objective is purely for profit and not because of the need for the commodity in question, he can complete the trade by buying the same contract for the same amount when the price is relatively cheap.
Traders can buy commodities first and sell them when prices move high, and vice versa, traders can sell commodities first and then buy commodities when prices move low. This shows that when the price trend is up or down, it will provide the same opportunities in GOFX trading, so it can also be called a two-way opportunity.
What Is Spot Price & Future Price
In future trading, there is what is called the spot price and futures price. The spot price is the current price of the commodity or often referred to as the physical price/cash, while the futures price is the price in the future, namely when the futures contract matures.
In calculating futures prices, logically other variables such as commodity storage costs, transportation costs, changes in value costs, and other costs related to time must also be added.
These variable costs are referred to as “Carrying Costs”. If the market is in a normal position then the futures price should be higher than the spot price.
The spot price and futures price will continue to experience differences (difference) until the contract enters maturity where the futures price is the same as the spot price.
This condition means that the price of the commodity has been determined (price discovered). The difference or difference in the price of spot futures is referred to as the Basis.
