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Spot market

The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery.[1] It contrasts with a futures market, in which delivery is due at a later date.[2] In a spot market, settlement normally happens in T+2 working days, i.e., delivery of cash and commodity must be done after two working days of the trade date.[1] A spot market can be through an exchange or over-the-counter (OTC). Spot markets can operate wherever the infrastructure exists to conduct the transaction.

Exchange edit

Securities (i.e. financial instruments) and commodities are traded on an exchange using, making, and possibly changing the current market price.

OTC edit

In the OTC i.e., over the counter market, trades are based on contracts made directly between two parties, and not subject to the rules of an exchange. The contract terms are agreed between the parties and may be non-standard. The price will probably not be published.

Examples edit

Energy spot edit

The spot energy market allows producers of surplus energy to instantly locate available buyers for this energy, negotiate prices within milliseconds, and deliver energy in a short-term timeframe.[3] Spot markets can be either privately operated or controlled by industry organizations or government agencies. They frequently attract speculators, since spot market prices are known to the public almost as soon as deals are transacted. Examples of energy spot markets for natural gas in Europe are the Title Transfer Facility (TTF) in the Netherlands and the National Balancing Point (NBP) in the United Kingdom.

See also edit

References edit

  1. ^ a b "Spot Market". Corporate Finance Institute. Retrieved 2023-08-16.
  2. ^ "Spot Market Definition | Britannica Money". www.britannica.com. Retrieved 2023-08-16.
  3. ^ "Energy Markets – Europex". Retrieved 2023-08-16.


spot, market, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, august, 2023,. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Spot market news newspapers books scholar JSTOR August 2023 Learn how and when to remove this template message The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery 1 It contrasts with a futures market in which delivery is due at a later date 2 In a spot market settlement normally happens in T 2 working days i e delivery of cash and commodity must be done after two working days of the trade date 1 A spot market can be through an exchange or over the counter OTC Spot markets can operate wherever the infrastructure exists to conduct the transaction Contents 1 Exchange 2 OTC 3 Examples 3 1 Energy spot 4 See also 5 ReferencesExchange editSecurities i e financial instruments and commodities are traded on an exchange using making and possibly changing the current market price OTC editIn the OTC i e over the counter market trades are based on contracts made directly between two parties and not subject to the rules of an exchange The contract terms are agreed between the parties and may be non standard The price will probably not be published Examples editEnergy spot edit The spot energy market allows producers of surplus energy to instantly locate available buyers for this energy negotiate prices within milliseconds and deliver energy in a short term timeframe 3 Spot markets can be either privately operated or controlled by industry organizations or government agencies They frequently attract speculators since spot market prices are known to the public almost as soon as deals are transacted Examples of energy spot markets for natural gas in Europe are the Title Transfer Facility TTF in the Netherlands and the National Balancing Point NBP in the United Kingdom See also editSpot dateReferences edit a b Spot Market Corporate Finance Institute Retrieved 2023 08 16 Spot Market Definition Britannica Money www britannica com Retrieved 2023 08 16 Energy Markets Europex Retrieved 2023 08 16 nbsp This finance related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Spot market amp oldid 1171376521, wikipedia, wiki, book, books, library,

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