Futures

Futures Discount

When a Futures contract's price trades below the spot price of its underlying asset.

A Futures discount occurs when a Futures contract’s price trades below the current spot price of its underlying asset — less common than a premium under standard cost-of-carry assumptions, but can happen, often reflecting strongly bearish sentiment or other market-specific dynamics.

See the full premium vs discount explanation in Futures Pricing Explained: Premium, Discount, and Cost of Carry.