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 ?
At present OPWP has not assessed any value to potential additional peak capacity that may be made available via the spot market.
This provides a price incentive for spot market deliveries to be exported to the Asia Pacific, in addition to the rising number of long-term SPAs being signed with countries in the region.
The study by Edward (1988), Harris (1989), Antoniou and Holms (1995), Kyriacou and Sarno (1999), Gulen and Mayhen (2000) and Vipul (2006) supported that the volatility of spot market has decreased after the introduction of futures trading.
Any volume of Syrian Light allocated for export but not lifted on term basis is sold on the spot market by Sytrol.
Wholesaler Bob van der Valk, manager of bulk supply for Santa Fe Springs-based Cosby Oil, said lingering problems at oil refineries have left the spot market jumpy, leading him to predict additional hikes of up to 20 cents in coming weeks.
Pennsylvania didn't set up a mandatory power spot market.
Said to be the biggest global chemicals exchange, it is a spot market with around 3300 members, including 20 of the world's 25 largest chemical makers.
In most cases, the dual-trigger policies written for energy suppliers pay off when the spot market price for the relevant energy commodity exceeds a set limit and a casualty event that limits supply happens at the same time.
Freight volume on the spot market, month-over-month, edged above July 2012 by 1.
11, 2015 /PRNewswire/ -- Spot market freight volume declined 9.
Oman Power and Water Procurement Company (OPWP), the nation s sole offtaker of all electricity and desalinated water output, is considering moves to introduce a spot market for electricity in a bid to promote competition among power producers in the Sultanate.
Japanese demand Japan, the world's biggest LNG buyer, will have to purchase at least 21 million metric tonnes on the spot market this year, according to data from Tri-Zen International Inc.