Investing 101

What is Spot Market

‘Spot market’ is a financial market where financial assets, securities or commodities are bought and sold in cash with immediate delivery. It is also known as ‘cash market’ or ‘physical market’. Spot market can be either an organized market or OTC (over the counter) or an exchange. In the spot market, contracts got effective immediately as soon they are traded while commodities can be delivered in one month or less.