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Spot Trade

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Spot trade
The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.

Spot Trade
A trade on any commodity or contract for immediate delivery. The most common spot trade is a trade on a foreign exchange contract. If one is trading a physical commodity, the buyer receives delivery of the underlying goods and compensates the seller immediately. If a spot trade is not settled immediately, the counterparty responsible is expected to compensate the other. Spot trades contrast with futures trades.


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Spot trade rate must be mend instantly in order to prevent the haste after completing exchange.
Spot trade is also backed by MOG's monthly pricing formula, which is sensitive to market forces.
The impending addition of additional US East Coast, Spanish and Portuguese LNG regasification capacity, shipping capacity (from 2003) as well as the planned expansions of many existing LNG production facilities and the entry into the market of new LNG buyers should provide a base for further growth in spot trade.
 
 
 
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