A market in which transactions are promptly completed, resulting in immediate transfer of ownership and payment upon delivery of a commodity.
A highly liquid global marketplace for currency trading. The foreign exchange market includes both the spot market for immediate transactions and the forward market for future transactions.
A physical commodity refers to an actual, tangible commodity that is delivered to the buyer upon the completion of a commodity contract, whether it be in the spot market or futures market. Examples include agricultural products like corn and soybeans, and natural resources like gold and oil.
A spot commodity is a commodity traded with the expectation that it will actually be delivered to the buyer, as contrasted with a futures contract, which will usually expire without any physical delivery taking place. Spot commodities are traded in the spot market.
A market that deals in commodities or foreign exchange for immediate delivery. Immediate delivery in foreign currencies usually means within two business days. For commodities, it typically means within seven days.
The current delivery price of a commodity traded in the spot market, also referred to as the cash price. It is the price at which a commodity can be bought or sold for immediate delivery.
Taking delivery refers to the acceptance of goods, commodities, or securities by the recipient, with documentation such as a bill of lading, reflecting the transfer and acknowledgment of receipt.
