Spot Market

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Definition of 'Spot Market'

The spot market is a financial market in which participants trade assets for immediate delivery. The spot market is contrasted with the futures market, in which participants trade assets for future delivery.

The spot market is used for trading a wide variety of assets, including stocks, bonds, commodities, and currencies. The spot price of an asset is the price at which it can be bought or sold for immediate delivery.

The spot market is an important part of the financial system. It provides a mechanism for participants to trade assets quickly and easily. The spot market also helps to set the prices of assets in the futures market.

There are a number of different types of spot markets. The most common type of spot market is the over-the-counter market. In the over-the-counter market, participants trade assets directly with each other, without the use of an intermediary.

Another type of spot market is the exchange-traded market. In the exchange-traded market, participants trade assets on a regulated exchange. The most well-known exchange-traded market is the New York Stock Exchange.

The spot market is an important part of the financial system. It provides a mechanism for participants to trade assets quickly and easily. The spot market also helps to set the prices of assets in the futures market.

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