Spot Market

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Spot Market.

A market where financial instruments (eg, commodities, currencies, and securities) can be traded for immediate delivery (ie, exchange of cash).  This is in contrast to a futures contract, which is based on the underlying asset delivery at a future date.  Spot markets are contrasted with derivatives markets that trade in forwards, futures, or options contracts.  Many spot market transactions take place on an exchange or over-the-counter (OTC).  Spot markets are also referred to as “physical markets” or “cash markets.”