spot commodity

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Spot commodity

A commodity that is traded with the expectation of actual delivery, as opposed to a commodity future that is usually not delivered.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Spot Commodity

A commodity traded on the current market. Spot commodities involve straightforward transactions; there is a buyer and a seller and the seller makes delivery of the commodity promptly when the transaction is settled. A spot commodity differs from a futures transaction, in which the buyer and seller agree to exchange the commodity at some point in the future.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

spot commodity

A commodity that is available for immediate delivery.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
A: The Securities and Exchange Board of India (Sebi) proposes to allow foreign entities to enter the commodities derivatives market provided they have exposure to the spot commodities market.
Therefore, only foreign entities with direct exposure to the spot commodities market will be permitted to enter the derivatives market and no other foreign investor will be allowed.
Core first-half earnings of HKEX's commodity division -- almost exclusively LME business -- slumped by 19% to HK$513mn as trade in metals declined while hiring linked to a new spot commodities trading platform in China drove up costs.
"DME is excited about this new auction capacity, which will enable the Exchange to offer a very attractive solution to customers in the Gulf that are looking to buy or sell spot commodities in a transparent and fair manner," said Owain Johnson, Managing Director of DME.
This offers customers the advantage of a transparent platform to trade spot commodities for immediate delivery.
The rise in oil prices is a sign that as financial markets destabilize, investors are shifting dollar assets into oil, gold and other spot commodities.
According to Rosine (1987), consumption of spot commodities as a share of nominal GDP ranged from 8 percent to 10 percent from 1973 to 1981, but fell to just 4 percent by 1986.(12) With the ongoing technological revolution, this decline has presumably continued into the 1990s.
"We are very excited about this new auction platform, which will enable the Exchange to offer a very attractive solution to customers in the Gulf that are looking to buy or sell spot commodities in a transparent and fair manner."