Spot market


    The spot market, or cash market, is where goods, equities, or other financial instruments such as currencies are exchanged for cash and delivered immediately.

    When something is traded in the spot market, traders (such as those involved in the forex industry) will conduct transactions ‘on the spot’, as opposed to a future, where delivery is sometime in the future.

    The term spot is also used to describe a price paid at the current market price, known as the spot price. For example, if the current market price for gold is $200 an ounce and you sell 10 ounces for immediate payment, the buyer would pay you the spot price of $2,000.