What is the spot market?

Spot Market is a market with securities or commodities where the goods, both spoil and indestructible, sell for cash and are supplied immediately or in a short period of time. Agreements sold on this market, which is also known as the "monetary market" or "physical market", are also effective immediately. Purchases are settled in cash at the current prices set by the market, unlike the price at the time of delivery. An example of a point commodity that is regularly sold is oil; It is sold at current prices and is physically supplied later.

Commodity is the basic good that is interchangeable with other similar goods. Some examples of commodities are grains, beef, oil, gold, silver, electricity and natural gas. Technology has entered the commodity market such as minutes of mobile phones and bandwidth. Commodities are standardized and must meet the specific standards to be sold.WS for the current exchange of one nation for another. The way it works is through an investor whoRAL of a few currency pairs. The currency from the UK (GBP) and the United States (USD) is a common couple that is bought and sold on this market. If GBP gains strength against USD, the investor will buy; If weak is sold. The advantage of a foreign currency is that it is very liquid, so the investor can enter and get off the market.

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Futures market differs in that the futures market prices are affected by the cost of storage and future prices. Prices can be affected by the current supply and demand on the market, which tends to increase volatile prices.

Another factor that affects prices on the market market is whether the commodity is subject to or indestructible. An irrelevant commodity, such as gold or silver, sells at the price that reflects future prices. Supply and demand will be affected by commodity such as grain or fruit. For example, tomatoes purchased in July will reflect the currentThe excess of the commodity and will be cheaper than in January, when the demand for smaller crops will increase. The investor cannot buy tomatoes for January delivery at July prices.