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The spot market or cash market is a commodities or securities market in which goods are sold for cash
Cash

Cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, "cash" refers to current assets comprised of currency or currency equivalents that can be accessed immediately or near-immediately ....
 and delivered immediately. Contracts bought and sold on these markets are immediately effective. Spot markets can operate wherever the infrastructure
Infrastructure

Infrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise , or the services and facilities necessary for an economy to function....
 exists to conduct the transaction. The spot market for most securities exists primarily on the Internet
Internet

The Internet is a global network of interconnected computers, enabling users to share information along multiple channels. Typically, a computer that connects to the Internet can access information from a vast array of available server and other computers by moving information from them to the computer's local memory....
.

Spot Forex The spot foreign exchange market
Foreign exchange market

The foreign exchange market market is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies....
 has a 2 day delivery date, originally due to the time it would take to move cash from one bank to another.

spot energy market
Energy market

Energy markets are those commodities markets that deal specifically with the trade and supply of Energy . Energy market may refer to an electricity market, but can also refer to other sources of energy....
 allows producers of surplus energy to instantly locate available buyers for this energy, negotiate prices within milliseconds and deliver actual energy to the customer just a few minutes later.






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The spot market or cash market is a commodities or securities market in which goods are sold for cash
Cash

Cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, "cash" refers to current assets comprised of currency or currency equivalents that can be accessed immediately or near-immediately ....
 and delivered immediately. Contracts bought and sold on these markets are immediately effective. Spot markets can operate wherever the infrastructure
Infrastructure

Infrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise , or the services and facilities necessary for an economy to function....
 exists to conduct the transaction. The spot market for most securities exists primarily on the Internet
Internet

The Internet is a global network of interconnected computers, enabling users to share information along multiple channels. Typically, a computer that connects to the Internet can access information from a vast array of available server and other computers by moving information from them to the computer's local memory....
.

Examples


Spot Forex

The spot foreign exchange market
Foreign exchange market

The foreign exchange market market is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies....
 has a 2 day delivery date, originally due to the time it would take to move cash from one bank to another.

Energy Spot

The spot energy market
Energy market

Energy markets are those commodities markets that deal specifically with the trade and supply of Energy . Energy market may refer to an electricity market, but can also refer to other sources of energy....
 allows producers of surplus energy to instantly locate available buyers for this energy, negotiate prices within milliseconds and deliver actual energy to the customer just a few minutes later. Spot markets can be either privately operated or controlled by industry organizations or government agencies. They frequently attract speculators, since spot market prices are known to the public almost as soon as deals are transacted. Examples of energy spot markets for natural gas
Natural gas

Natural gas is a gas consisting primarily of methane. It is found associated with fossil fuels, in coal beds, as methane clathrates, and is created by methanogenic organisms in marshes, bogs, and landfills....
 in Europe are the Title Transfer Facility
Title Transfer Facility

The Title Transfer Facility, more commonly known as TTF, is a virtual trading point for natural gas in the Netherlands. Set up by Gasunie in 2003, it is almost identical to the National Balancing Point in the United Kingdom and allows gas to be traded within the Dutch network....
 (TTF) in the Netherlands
Netherlands

The Netherlands is a country that is part of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands is located in North-West Europe, and bordered by the North Sea to the north and west, Belgium to the south, and Germany to the east....
 and the National Balancing Point
National Balancing Point (UK)

The National Balancing Point, commonly referred to as the NBP, is a Virtual trading point for the sale and purchase of UK natural gas. It is the pricing and delivery point for the IPE natural gas futures contract....
 (NBP) in the United Kingdom
United Kingdom

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom , the UK or Britain,is a sovereign state located off the northwestern coast of continental Europe....
.