What are the spot prices?

The spot price is the price at which the commodity or currency changes your hands if it is sold immediately. The name is effectively based on the fact that the agreement is completed "on the spot". Spot price often differs from futures prices, and this difference may indicate how the market is displayed future performance. Commodities are goods that exist physically, such as grains, metals, oils or livestock. However, most merchants simply buy and sell these goods remotely and never see them. Spot prices can also cover international currencies. This covers a wide range of financial instruments as diverse as cash and futures contracts. The spot price for security is often known as cash price.

For those who are not familiar with financial markets, it might seem strange that the spot price should be significant. After all, the price of most Goods is the one that is paid today. On the financial markets, however, there is another level of complexity known as futures contracts.

with futures contract is not purchased by the product itself. Instead, the right to buy or sell the product is purchased at a specified price on a specific future date. The idea is that the prevailing price on that day will vary from a given price in a way that benefits you. Since this is more or less likely, as the date is close, you can sell futures contract at a higher or lower price than you paid for it. Another option gives you the opportunity to buy or sell a product, but without commitment to do so.

There are two different prices for the existence of a financial product at any time, the forehead price and the handover price, the second is the "course of the courses" for the purchase and sale of futures contract for production. Depending on the type of product, the difference between them can be very informative. If the handover price is higher than the spot price, it is a good indication that the market expects that the spot price will increase in the future. With commodities it can be a reaction to the changing ÚEqual supply and demand for good. However, it is important to realize that there will be some inherent differences, such as the transfer price of shares that reflect the fact that someone holding shares over time receives dividend payments.