Spot Price

Spot price refers to the price of a commodity or financial asset at a particular point in time, usually the current time. It is the price paid for an asset or commodity at the moment of purchase, without any delay.

Key features of spot price:

• Current price: Spot price is the price for immediate delivery of the asset or commodity.
• Real-time: Spot prices fluctuate continuously throughout the trading day.
• No delay: Payment and delivery occur simultaneously at the spot price.
• Market determination: Spot prices are determined by the forces of supply and demand.
• Hedging: Spot prices are often used for hedging purposes, as they can provide a reference point for future prices.

Examples:

• Spot price of gold: The price of gold per ounce at the current moment.
• Spot price of oil: The price of oil per barrel at the current moment.
• Spot price of the dollar: The exchange rate for the dollar against other currencies.

Uses:

• Inventory management: Spot prices are used to determine the cost of inventory.
• Futures trading: Spot prices are used as a reference point for futures contracts.
• Hedging: Spot prices are used for hedging against potential price fluctuations.
• Market analysis: Spot prices are used to analyze market trends and patterns.

Note: Spot prices can vary widely depending on the specific asset or commodity, the location of the market, and other factors.