spot market
Also found in: Dictionary, Thesaurus, Idioms, Wikipedia.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
spot market
See cash market.
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.
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.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005