What is Spot Market?

The spot market is a public financial market in which the trade of financial instruments or commodities are immediately settled and delivered. While the delivery of physical goods purchased may be slightly delayed due to real-world logistical considerations or business protocols. However, spot market purchases are settled at the price fixed at the point of purchase rather than the price at the time of distribution. This contrasts with futures markets, in which delivery is due at a later date, and prices may fluctuate in accordance to market movements which occur after an exchange has been made.