Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• SPOT MARKET
  
  Commodities and foreign currencies are traded for immediate delivery and payment on the spot market-also known as a cash market. The term refers to the fact that the full cash price is paid "on the spot," or within a short period of time. A cash sale, whether arranged in person, over the telephone, or electronically, is the opposite of a forward contract, where delivery and settlement are set for a date in the future, or a futures contract, which is an agreement to trade a commodity for a set price on a specific date in the future.
  
  Back