Spot Price

Trading

Quick Definition

Spot Price is the current market price at which an asset (like gold, stocks, or commodities) can be bought or sold for immediate delivery.

Detailed Explanation

The Spot Price reflects the real-time value of an asset in the market. Transactions at this price are settled immediately or within a short period (typically T+1 or T+2).

Spot prices are widely used in commodity markets (gold, oil), stock markets, and forex trading.

Trading and pricing in India are monitored by exchanges like the National Stock Exchange and Bombay Stock Exchange under regulation of the Securities and Exchange Board of India.

Spot Price vs Futures Price

  • Spot Price: Current price for immediate delivery
  • Futures Price: Agreed price for future delivery

Why Spot Price Matters

  • Reflects real-time market conditions
  • Basis for pricing derivatives
  • Helps traders make buy/sell decisions

Factors Affecting Spot Price

  • Supply and demand
  • Market sentiment
  • Global economic conditions
  • Currency fluctuations

Example

"If gold is trading at ₹60,000 per 10 grams today, that is its spot price."

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