Spot
The spot price is the current market price at which an asset, such as a commodity, currency, or security, can be bought or sold for immediate delivery. Spot prices are in contrast to future prices, which refer to agreements to buy or sell an asset at a set price for delivery at a later date. Spot transactions are common in commodity markets, where goods like oil or gold are traded for immediate delivery.
Example
The spot price of gold is $1,800 per ounce, meaning it can be bought or sold at that price for immediate delivery in the market.
Key points
• The current price of an asset for immediate delivery.
• Common in commodities and currency markets.
• Differs from futures prices, which are for delivery at a later date.
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