en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Financial Glossary
      
Spot price
       
 
Back

Spot price

 Search definitions     
  Search  

Spot price
The current value of an asset.
    
The current price at which a particular commodity can be bought or sold at a specified time and place is the Spot price. It is also the price that is quoted if you want to buy any commodity today.
    
The Spot price or Spot rate of a commodity, a Security or a Currency is the price that is stated for immediate (Spot) settlement (payment and Delivery). Spot settlement is normally one or two business days from trade date. This is in contrast with the Forward price established in a Forward contract or Futures Contract, where contract terms (price) are set NOW, but Delivery and payment Will occur at a Future date.
    
Depending on the item being traded, Spot prices can indicate market expectations of Future price movements in different ways. For a Security or non-perishable commodity (e.g., gold), the Spot price reflects market expectations of Future price movements. On the contrary, a perishable commodity does not allow this Arbitrage - the cost of storage is effectively higher than the expected Future price of the commodity.
Posted by  Privatebanking.com
 
  Back  
  Print  
  Email  

 

private banking
Get Adobe Flash Player to view the media
FlashPlayer required to view the media
private banking
private banking
private banking
private banking
private banking

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©