Spot Market

[spɑt ˈmɑrkɪt]

What is the definition of Spot Market?

A market where commodities or financial instruments are traded for immediate delivery and payment based on the settlement conventions of the particular market.

Using Spot Market in an Example

In the spot market for foreign exchange, currencies are traded and exchanged at the current market rate, and transactions are settled 'on the spot,' usually within two business days.

Using Spot Market in a sentence

The company decided to purchase additional copper on the spot market to take advantage of the lower prices available for immediate delivery.

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