What is premium and discount in the futures market?
If the futures price is trading higher than the spot, then the futures market is said to be at a premium. On the other hand, a discount is when the spot price exceeds the futures price. While in normal conditions the futures trade at a premium. However, at times, due to demand-supply mismatch futures would trade at a discount. Click here to understand the basics of futures trading. Courtsey : Upstox (start Karke Dekho) For more about Upstox - Read more ...