spot market

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Related to spot market: forward market

Spot Market

A market in which an asset bought or sold is delivered immediately. To give a basic example, if one buys a stock and it is delivered immediately, one utilizes the spot market. It differs from derivatives markets like futures. Perhaps less commonly, it is called the cash market.

spot market


Spot market.

Commodities and foreign currencies are traded for immediate delivery and payment on the spot market, also known as a cash market.

The term refers to the fact that the current market price is paid in cash on the spot, or within a short period of time.

A cash sale, whether arranged in person, over the telephone, or electronically, is the opposite of a forward contract, where delivery and settlement are set for a date in the future.

The same is true for a futures contract, which is an agreement to trade a commodity today for a set price at delivery on a specific date in the future.


spot market

a market which provides for the buying and selling of FINANCIAL SECURITIES (shares, stocks), FOREIGN CURRENCIES, and COMMODITIES (rubber, tin etc.) for immediate delivery, as opposed to a FORWARD MARKET which provides for delivery at some future point in time. Spot prices reflect current demand and supply conditions for the financial security currency or commodity being traded (see EQUILIBRIUM MARKET PRICE). Spot prices for commodities and financial assets transacted at different locations are harmonized by ARBITRAGE dealings. See FOREIGN EXCHANGE MARKET, COMMODITY MARKET, STOCK MARKET.

spot market

a market for the purchase and sale of COMMODITIES (tea, rubber, etc.) and financial instruments (FOREIGN EXCHANGE, STOCKS and SHARES) for immediate delivery, as opposed to a FUTURES MARKET, which provides for delivery at some future point in time. Spot prices for commodities and financial instruments transacted at different locations are harmonized by ARBITRAGE.
References in periodicals archive ?
" Once the Spot Market is operational, there is a channel for an investor or generator to sell power into the market; they dont have to be on a contract with OPWP; they can develop their facilities and sell power to us at the price that is set by the market.
According to OPWP, the introduction of spot market will increase competition in Oman's power generation market and make available additional capacity that might otherwise not be readily accessible through the existing purchases agreement channels.
In livestock industries such as cattle, hogs, and broilers, transactions between farmers and packers are completed using either the spot market or AMAs.
BCause LLC includes mining facilities, as well as a spot market, regulated derivatives exchange and regulated clearing house.
For example, BCG use a weekly spot market price and a semi-monthly retail price.
Specifically, we establish a decision making model from the perspective of the firm who will procure from the multiple suppliers and the spot markets. The suppliers are unreliable and provide different types of option-type supply contracts which should be made before demand realization, while the spot market can only be used after demand realization and has both the price and liquidity risks.
"Adnoc will likely keep to the local market like power companies and push out to the spot market if there are extra (volumes)," one of the sources close to the matter said.
On 11 December 2012, the Commission opened an investigation (see Europolitics 4547) into this business practice, which - on the power exchange spot markets (day-ahead and intraday markets) - discriminates against foreign traders and inhibits competition on the Romanian electricity market.This is in violation of Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 54 of the European Economic Area (EEA) agreement.
The company's gas supply contracts with Russia are long term and depend on oil prices, while the delivery contracts for industrial clients are linked to the spot market prices.
Belgium imported 6.1 million tons in 2011, up from 2.8 million in 2007, some of which was re-exported through recently-expanded storage facilities at Zeebrugge port, designed to support the development of an LNG spot market.
In the period from 2014-21, around 16 per cent of production is not covered by existing SPAs and is potentially available to be sold on spot markets. It is likely that over time, new contracts will be signed to replace or extend existing contracts as their terms expire.