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.
Between 1993 and 2002, spot market share of hog sales decreased from 87% to 17% and fell to 5-7% of barrow and gilt slaughter by 2010.
One view is that derivatives securities increase volatility in the spot market due to more highly leveraged and speculative participants in the futures market.
The spot market price of Syrian Light in February averaged $58.
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.
As the trader said: "The surplus is hurting the contract positions as it is falling in price and hitting the spot market.
Many purchases and sales occur in spot markets, where there is no "pre-transfer" paper trail.
They deliberately and artificially made the spot market--the most volatile market--the primary market," explains Levin, who later adds, "I call them spot market pagans.
If the citizens of the Golden State have been asleep, they've fast woken up, quickly picking up terms like "ISO," "power grid," "partial deregulation" and "buying on the spot market.
Sellers can effectively reduce their excess inventory by selling on the spot market on an anonymous basis.
For now, what's up for grabs is mainly the 20% of plastics materials purchased on the spot market, versus the 80% bought through contracts.