spot market

Cash-and-carry exchange

A spot market is where commodities, currencies, or securities are traded for immediate delivery and payment, as opposed to futures markets where delivery happens later.

The "spot" refers to trading "on the spot"—transactions settle within days rather than months.

Oil prices in the spot market jumped after the pipeline shutdown.

trading

exchange

Mutual giving and receiving

over-the-counterBuyable without medical authorization
transactionExchange of goods/money
dealersThose who sell merchandise

brokers · execution · settlement · clearing · order book · trading volume · buyers · sellers · counterparty · auction

commodities

oil

Slippery viscous fluid

natural gasSubterranean hydrocarbon fuel
goldElement seventy-nine
wheatCereal crop for flour

copper · soybeans · corn · silver · cotton · crude · electricity · palladium · lumber · coffee

volatility

fluctuation

Irregular change over time

price swingsChanges in cost levels
uncertaintyState of being unsure
riskPossibility of harm

instability · variability · speculation · supply shock · demand spike · price spike · correction · oversupply · shortage

pricing

benchmark

Standard for comparison

premiumAdded cost for better
discountReduced price offered
basisUnderlying support or principle

quotation · valuation · price transparency · posted price

immediacy

quick turnaround

Completing tasks rapidly

Opposites

temporal delivery

spot marketfutures market

Trading venue for forward contracts

futures exchange · futures trading

contract type

spot marketoptions market

Venue for trading contracts

futures market · financial derivatives

Family

spot, market, spotted, marketing, marketplace, commodity market

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