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Spot Market

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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.



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Of the latter's LNG output, again 2m t/y will be sold on the spot market and 2.
A lender of a commodity has no incentive to lend to the spot market because he would be in effect selling low and buying high.
Abstract This article examines empirically the impact of futures on spot market volatility in India.
 
 
 
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