Spot Market (Noun)
Meaning
A market in which a commodity is bought or sold for immediate delivery or delivery in the very near future.
Classification
Nouns denoting man-made objects.
Examples
- The company purchased the raw materials on the spot market due to time constraints in their production line.
- Traders often engage in speculation on the spot market to quickly capitalize on fluctuations in commodity prices.
- Changes in weather and climate significantly impact crop yields and subsequently affect commodity prices on the spot market.
- Investors preferred to buy the shares on the spot market rather than entering futures contracts for better liquidity.
- Spot market trading often comes with high risks due to the volatile nature of price fluctuations in a short timeframe.