In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after the trade date.
What is the difference between spot and forward markets?
(b) Forward Market: A market in which foreign exchange is bought and sold for future delivery is known as Forward Market. This rate is settled now but actual transaction of foreign exchange takes place in future. The forward rate is quoted at a premium or discount over the spot rate.
What is commodity spot market?
The spot is a market for financial instruments such as commodities and securities which are traded immediately or on the spot. Unlike the futures market, orders made in the spot market are settled instantly. Spot markets can be organized markets or exchanges or over-the-counter (OTC) markets.